Despite displaying signs of a potential recovery, the Shiba Inu bounce remains uncertain due to its enduring bearish structure. Between August 14th and 17th, Shiba Inu (SHIB) witnessed a 32% drop, only to rebound slightly at a higher timeframe support zone. Although some demand was observed at this point, lower timeframe price charts revealed a bearish dominance.
Anticipating a Market Shift
For a substantial shift in market structure, a significant surge in demand is necessary. Over the past few days, a minor bounce was observed from the aforementioned demand zone, potentially fueled by the news of an increased burn rate. The key question, however, remains: can SHIB buyers successfully alter the market structure?
SHIB’s recent lower high was highlighted at $0.00000871. If this level is surpassed, it could signal a bullish flip in the market structure. However, the higher timeframe resistance of $0.00000846 is expected to hinder the buyers’ attempts.
Shiba Inu’s Potential Momentum
In the 12 hours preceding press time, the Shiba Inu bounce recorded a 9.27% increase. The OBV showed a minor uptick, while the RSI crossed the neutral 50 mark, suggesting bullish momentum. This evidence supports the possibility of a further climb to the $0.00000871 level. Should there be a rejection at this level, it is likely that a range formation scenario would unfold, with $0.00000776 as the range low.
Alternatively, if SHIB can exceed the $0.000009 resistance, it could indicate a potential upward journey to the next resistance at $0.0000107, a significant level on higher timeframes.
Market Sentiment and Future Prospects
According to Santiment data, the MVRV ratio (30-day) was negative, implying that the meme coin is undervalued. However, after recent substantial losses, its weighted sentiment is barely positive. Over the last five days, the mean coin age has been rising, which could potentially attract more buyers.
Since mid-August, the Open Interest chart has been on a strong downward trend. If this trend reverses in the coming days, it could suggest a growing bullish sentiment in the market. An increase in Shiba Inu’s price, coupled with the OI, could signal bidding speculators. This development could be instrumental for SHIB to surpass the local resistance and target the $0.00001 mark.
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