- Shiba Inu is currently experiencing a bearish internal structure due to an ongoing retracement.
- While a move higher is anticipated, it is unlikely to result in a bullish breakout.
- Despite attempts by Shiba Inu bulls to establish an uptrend, buying volume remains minimal.
Discover the latest developments in Shiba Inu’s market performance and what it means for investors.
Shiba Inu’s Market Struggles Amidst Broader Crypto Rally
Shiba Inu (SHIB) bulls have been striving to establish an uptrend for the memecoin, but their efforts have yet to yield significant results. Despite a rally in Bitcoin (BTC), the buying volume for SHIB has remained minimal. This suggests that investors might be waiting for capital rotation from BTC and Ethereum (ETH) into memecoins. However, the performance of other memecoins like Pepe (PEPE) and Bonk (BONK) has easily outstripped SHIB’s over the past weeks. Shiba Inu’s social metrics have suffered, and Shibarium transactions have seen a significant decline of 97%.
Shiba Inu’s Efforts to Turn Things Around
Since mid-April, Shiba Inu has been slowly setting a series of higher lows. However, the lower high at $0.0000282 from April 21st has not been breached. Although the higher timeframe price trend appears bullish, the token’s internal structure remains bearish following the March pullback. The Relative Strength Index (RSI) on the daily chart has recently moved above the neutral 50 mark, indicating early signs of bullish momentum. However, the On-Balance Volume (OBV) has not breached a resistance level, which is crucial for sustained bullish progress. As it stands, Shiba Inu is more likely to consolidate than rally higher.
Potential for a Bullish Flip in Internal Structure
The cluster of liquidation levels above the current market prices extends to the $0.00003 level, which has served as resistance since early April. Given the proximity of prices to this magnetic zone, a move higher is anticipated. Traders can use this move to realize profits or exit positions. However, unless the $0.0000282 level holds as support, investors might consider waiting before buying.
Conclusion
In summary, Shiba Inu is currently facing a bearish internal structure despite attempts to establish an uptrend. While a move higher is anticipated, it is unlikely to result in a bullish breakout unless key resistance levels are breached. Investors should closely monitor the market dynamics and consider the potential for consolidation before making any investment decisions.
