Recently, Japanese authorities revealed data indicating a decline in the popularity of Shiba Inu, a well-known dog breed. This shift in demand has sparked speculation among experts about the future prospects for Shiba Inu breeders and owners.
An intriguing development was observed with the removal of 151.61 billion Shiba Inu [SHIB] tokens valued at $2.41 million from Coinbase. Continued outflows of this memecoin could signal a phase of accumulation within the market.
While daily price movements appeared negative, a change in market structure was noted on the 4-hour chart. The question arises: Is there sufficient demand to uphold this alteration in the shorter time frame, or should traders prepare for further declines?
Shiba Inu OBV Analysis
The resistance level of the $0.00002 bullish breaker block had been previously breached before the early February downturn.
Identified as the next support level, $0.00001288 displayed consolidation around $0.000016 in October 2024, underscoring it as a crucial demand area.
Despite the price reaching lows, the OBV remained below the October figures, indicating significant selling pressure over the past couple of months.
The inability of the OBV to surpass the October lows might impede bullish recovery endeavors. Furthermore, the bearish dominance was emphasized by the RSI lingering under 50.
An optimistic market structure break (highlighted in orange) was evident on the H4 chart, complemented by higher lows in prices during the previous week.
While the OBV trended upwards from the October lows shown on the daily chart, the sustainability of this purchasing pressure remains uncertain in the near term.
Analysis of the liquidation heatmap following the recent bounce from local lows indicated the $0.0000154-$0.0000157 range as a potential short-term objective.
Another short-term target was observed at $0.0000174, recognized as a significant level to the north. Traders already engaged in long positions might consider securing profits at this juncture, particularly due to the lack of short-term bullish sentiment across the market.
Disclaimer: The views expressed in this content are purely the writer’s opinion and should not be construed as financial, investment, trading, or any other form of advice.