- Shiba Inu’s [SHIB] recovery hangs in the balance after chalking a double-bottom pattern, with a recovery of over 20%.
- The recovery is facing hurdles that could only be bypassed if Bitcoin [BTC] extends its recovery.
- Market sentiment dips into negative territory, underscoring potential bearish bets against SHIB’s price.
Shiba Inu’s [SHIB] recovery of over 20% hangs in the balance, facing hurdles that could be bypassed if Bitcoin [BTC] extends its recovery. However, market sentiment dips into negative territory, indicating potential bearish bets against SHIB’s price.
Shiba Inu’s Recovery: A Double-Edged Sword
Shiba Inu [SHIB] has been up over 20% since May Day, reversing part of the April losses. However, at press time, the memecoin was yet to flip its market structure bullish on the higher timeframe charts. It faced a double roadblock near the 50% Fibonacci retracement level. Can bulls clear the hurdles and reverse the remaining Q1 losses?
Can Bulls Bypass Sellers Eyeing the 50% Fib Level?
On the daily chart, a Fibonacci retracement tool was plotted between January lows and Q1 highs. Based on the tool, the price level of $0.00000270 was crucial. It was also a 50% Fib placeholder and a daily bearish order block (OB). So, it could act as a significant sell wall. A trendline resistance was also below the potential sell wall (marked red). But, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) had neutral readings. These meant weak buying pressure and low capital inflows that could complicate SHIB’s recovery at $0.0000270.
Market Sentiment Dips Into Negative Territory
The recent recovery was accompanied by positive sentiment on the memecoin. However, as shown by the Santiment data, the sentiment dipped into negative territory, underscoring potential bearish bets against SHIB’s price. Additionally, there was a slight uptick in sell-pressure, as shown by the easing drop in the Supply on Exchanges metric (orange). The metric tracks SHIB’s flow into exchanges, and a positive reading indicates a surge in inflow and potential sell pressure.
Conclusion
Despite the recovery, Shiba Inu [SHIB] faces significant hurdles that could potentially halt its progress. The market sentiment dipping into negative territory and the increase in sell pressure indicate potential bearish bets against SHIB’s price. However, if Bitcoin [BTC] extends its recovery, it could drag SHIB bulls to crack the neckline resistance. Hence, tracking BTC’s price action could be crucial to gauge SHIB’s next move.
