- Shiba Inu has a bearish internal structure due to the ongoing retracement.
- A move higher is anticipated but it would likely fall short of a bullish breakout.
Shiba Inu [SHIB] bulls were trying to establish an uptrend for the memecoin but have not yet succeeded. The buying volume has been minimal despite the Bitcoin [BTC] rally. This suggested investors might have to wait for capital rotation from BTC and ETH into memes.
However, the performance of Pepe [PEPE] and Bonk [BONK] easily outstripped SHIB’s over the past week or two. The Shiba Inu social metrics suffered and Shibarium transactions were down by 97%.
Shiba Inu is beginning to turn things around
Source: SHIB/USDT on TradingView
Since mid-April, Shiba Inu has slowly set a series of higher lows. However, the lower high at $0.0000282 from the 21st of April was not breached.
Therefore, even though the higher timeframe price trend was bullish, the token had a bearish internal structure after the March pullback.
The RSI on the daily chart poked its head above neutral 50 a week ago and has stayed there. This was an early sign that bullish momentum was gaining strength and the trend might shift.
Conversely, the OBV, like the price, was unable to breach a resistance level. This would be crucial for the continued bullish progress of Shiba Inu. As things stand, it was more likely for the memecoin to consolidate than to rally higher.
The internal structure could be flipped bullishly soon
The cluster of liquidation levels above the current market prices extended to the $0.00003 level. This area has served as resistance since early April.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Given the proximity of prices to this magnetic zone, a move higher is anticipated.
Hence, traders can use this move to realize profits or exit positions. However, unless the $0.0000282 level holds as support, investors could wait before buying.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.