SHIB’s Break Above the $0.00001269 Level May Be Short-Lived
- SHIB’s price was able to break above the 61.8% Fib level.
- There may be some short-term sell pressure that will delay SHIB’s recovery.
The price of the second largest meme token by market cap, Shiba Inu (SHIB), has risen 2.26% over the last 24 hours according to CoinMarketCap. Despite the 24-hour gain, SHIB’s price performance is still in the red at -13.97% over the last week. As a result, the price of SHIB stands at $0.00001285.
This comes after SHIB’s price broke above the 61.8% Fib level at $0.00001269. The break above this level may be short-lived, however, given the bearish structure currently indicated by the RSI indicator on SHIB’s chart. This suggests that SHIB’s price could retest the 50% Fib level at $0.00001175 in the coming days.
The bearish sentiment indicated by SHIB’s RSI may be invalidated given that the Money Flow Index (MFI) has historically always rebounded from the mid-level on the 12-hour time frame chart. Should this pattern repeat, it will suggest an increasing demand for SHIB.
Furthermore, a small uptick in buying pressure will result in bulls having enough momentum to overcome the price hurdle at $0.00001316. This move will then invalidate the bearish thesis.
The blockchain intelligence firm, Santiment, shows that SHIB recorded little demand as short-term supply increased. In addition to this, the Supply on Exchanges recorded an uptick. This indicates that more SHIB was moved to exchange platforms for offloading.
This short-term sell pressure could delay SHIB’s long-term recovery. This short-term sell pressure may also be accompanied by a short-term devaluation for SHIB given that the supply out of exchanges registered a drop – a sign that SHIB demand was low compared to its supply.
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