Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Selling pressure sunk Shiba Inu under $0.000009 price level
- Market sentiment was bearish in the short term.
The excitement around the imminent release of Shiba Inu’s [SHIB] layer-2 ecosystem, Shibarium sparked a buying frenzy on the memecoin over the weekend. Breaking away from Bitcoin’s [BTC] faltering price action, Shiba Inu recorded gains of 23% between 5 August to 6 August.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
However, the sharp price increase hit a major roadblock at the $0.00001 price zone which reversed almost all the gains from the bullish rally. Can bears extend the bearish momentum after the price rejection or will bulls rebound to maintain the uptrend?
Bullish rally fails to clear significant price hurdle
Source: SHIB/USDT on Trading View
The price rejection at the $0.00001 price level created an opening for sellers after Shiba Inu’s bullish rally. A look at the price action in the four-hour timeframe showed a notable price drop after the retest of the resistance level at $0.00000980.
This took Shiba Inu’s price under the $0.000009 price level. Although the selling pressure eased at press time with Shiba trading at $0.00000898, the RSI & CMF indicators hinted at further price dips.
After the price rejection, the Relative Strength Index (RSI) dropped sharply from the overbought zone. A further dip under the neutral 50 highlighted the waning buying power for Shiba Inu.
Similarly, the Chaikin Money Flow (CMF) declined from +0.40 to -0.06 between 5 August to 7 August. As of press time, it stood at -0.08 to signal more capital outflows.
This showed bears were in control on the lower timeframes which could lead to more price dips on the higher timeframes.
Speculators not moved by Shibarium
Source: Coinglass
Realistic or not, here’s SHIB’s market cap in BTC’s terms
A look at the exchange long/short ratio on Coinglass showed that market speculators were actively shorting Shiba Inu. The short-term bearish momentum was highlighted by the shorts’ 53.1% share of Shiba Inu open contracts.
Therefore, sellers can look to extend gains with targets around the $0.000008 to $0.00000850 price level.
