The transfer of 151.61 billion Shiba Inu [SHIB] tokens, equivalent to $2.41 million, from Coinbase marked an intriguing development. Continued outflows of this meme-inspired cryptocurrency could hint at accumulation activities within the market.
Although the daily price movements remained bearish, there was a noticeable change in the market structure on the 4-hour timeframe. The question now arises: Is there adequate demand to sustain this shift on the lower timeframes, or should traders prepare for additional losses?
Shiba Inu On-Balance Volume (OBV) Approaching a Critical Point
Previously, the $0.00002 support level had transitioned into a resistance level before the sharp decline in early February.
While the next support lay at $0.00001288, the consolidation around $0.000016 back in October 2024 also emerged as a notable demand area.
Despite the price hitting lows, the OBV remained below the October levels, signaling significant selling pressure in recent months.
Furthermore, with the OBV struggling to surpass the October lows, any bullish recovery efforts might face delays. Additionally, the RSI below 50 emphasized the prevailing bearish sentiment.
Notably, a bullish break in market structure (highlighted in orange) was observed on the 4-hour chart, accompanied by a series of higher lows over the past week.
While the OBV, previously at October levels on the daily chart, exhibited a gradual upward trend, the arrival of sustained buying pressure in the days ahead remained uncertain.
Analysis of the liquidation heatmap after the recent bounce from local lows indicated a short-term target range of $0.0000154-$0.0000157, with $0.0000174 identified as another magnetic zone to the north.
Given the less optimistic short-term market sentiment, traders with long positions might consider taking profits around the $0.0000174 level, situated slightly above the recent local highs on the 4-hour chart.
Disclaimer: The opinions shared in this content do not serve as financial, investment, or trading advice and are solely reflective of the author’s perspective