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- The daily structure is bearish, with the momentum on the lower time frame also pointing south
- Further losses for Bitcoin could cause SHIB to drop in value quickly on the charts
shiba inu has been bearish on price charts in recent weeks. Investor sentiment was negative and trading volume also saw a decline in recent days. This, although network performance has remained healthy.
Read it Shiba Inu [SHIB] Price forecast 2023-24
For BitcoinDespite approaching a critical support level, it remained uncertain whether the downtrend across the crypto-market would see some relief. Federal Reserve Chairman Jerome Powell warned that interest rates could rise, an update that weighed on investor sentiment.
A bounce to the imbalance above could represent a shorting opportunity
On the daily chart, the structure was bearish after SHIB broke below the higher low at $0.0000117 (shown in orange). This happened on March 3rd and the price also left a fair value gap (white) in this area. Therefore, the conclusion is that sentiment was strongly bearish and sellers dominated the market.
The RSI reflected a change in bias when it fell below the neutral 50-mark and retested it as resistance in late February. However, OBV has yet to post major losses despite falling below the support level since February. This highlighted that Shiba Inu sellers are likely to intensify in the coming days.
On the upside, the imbalance looked like a bearish order block at $0.0000123. This area has been acting as a vital supply and demand area for the past two months. Therefore, a retest of this zone would likely represent a good risk-to-reward opportunity.
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Meanwhile, the next support levels were $0.0000105 and $0.0000094 – 3.4% and 13.2% below SHIB’s price at the time of writing.
Daily active addresses are decreasing but accumulation is observed
The 90-day MVRV ratio hit 6-month highs in early February and has since declined. At press time, it was in negative territory, which means short holders are at a loss overall. That didn’t mean selling pressure would ease, but it did highlight that holders likely took a profit in February.
The daily number of active addresses has declined since February 21 as it forms a series of lower highs. Meanwhile, weighted sentiment has returned to negative territory after a strong showing in early March.
On the contrary, the 90-day average age of the coins is increasing, signaling a network-wide accumulation phase. However, this may not immediately reverse the downtrend.
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