April 19, 2024
SHIB's Rollercoaster Bitcoin Pressure, Whale Moves, and Short-Term Downtrend
Altcoins News

SHIB’s Rollercoaster: Bitcoin Pressure, Whale Moves, and Short-Term Downtrend

Shiba Inu (SHIB), the widely known meme token in the cryptocurrency markets, experienced a substantial retreat on January 3rd, prompted by intense selling pressure in the Bitcoin (BTC) market. Initial indications suggested a potential downward trajectory for the cryptocurrency, but it surprisingly disrupted its bearish market pattern a week later.

Whale Activity Impacting SHIB

Approximately a week prior, a significant whale withdrew SHIB valued at $10.27 million from centralized exchanges, sparking speculation of a potential price surge. A few days afterward, prices indeed witnessed a nearly 10% upswing, steering the market sentiment back towards a bullish direction. The late December rise order block at the $0.00000916 level, coupled with the 50% Fibonacci retracement level, is considered a robust demand zone, offering a strategic advantage. Nevertheless, the selling pressure witnessed in January was notably heightened.

In the realm of altcoins, the $0.00000827 level, representing the 78.6% level, underwent testing and exhibited a substantial upturn. On January 7th, SHIB encountered another downturn, followed by the breach of the structure identified as a rise order block a week later. At the time of this composition, SHIB was trading just above this zone. Although the On-Balance Volume (OBV) displayed an increase in January, the momentum continued to favor the bears.

Present Insights into SHIB

Within the meme token sector, the Relative Strength Index (RSI) grappled with surpassing the neutral 50 threshold. Examination of the open interest (OI) trend over the preceding two weeks, aimed at gauging short-term market sentiment, revealed a substantial decrease in OI as prices declined on the 3rd of the month. Since then, OI has failed to recover. Notably, the period from January 8th to 11th witnessed price increases unaccompanied by a corresponding rise in OI, potentially indicating a lack of confidence in the futures market. Over the last three days, both OI and prices exhibited a decline, signaling a short-term downtrend.

Image by catalyststuff on Freepik

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