As of the latest data, Shiba Inu (SHIB) was trading at $0.0000268, experiencing a 1.9% decline within a 24-hour period. Despite a 10% increase over the past month, subdued buying pressure has hindered significant upward movement.
An apparent pattern on the one-day chart revealed a right-angled ascending broadening wedge formation. This pattern typically suggests a bullish continuation upon breaching the upper trendline. However, dwindling volume bars signal reduced trading participation, indicating insufficient buying support for an uptrend.
With the Money Flow Index (MFI) at 43, reflecting weak momentum and a downward slope hinting at an influx of sellers, market sentiments appear to be shifting. Conversely, the Chaikin Money Flow (CMF) holding a positive value of 0.15 implies prevailing buying pressure over selling activity, underscoring a conflicting market landscape likely leading to consolidation within a specific range.
Increased Inflows to Exchanges Shake Market Dynamics
Recent data from CryptoQuant highlighted a notable surge in SHIB inflows to exchanges, reaching the highest level in nearly five months on December 16. Over the last two days alone, a substantial amount of 1.78 trillion SHIB tokens have been transferred to exchanges.
Continuous token flows to exchanges coupled with inadequate demand to counterbalance selling pressure may predispose the meme coin to further declines.
Crucial Support and Resistance Levels to Monitor
An In/Out of the Money Around Price (IOMAP) analysis identified a strong support zone between $0.000024 and $0.000025, where 43,080 addresses acquired SHIB. This range could attract traders seeking entry points due to the historical profitability associated with these addresses.
Conversely, a significant supply area ranging from $0.000030 to $0.000031 witnessed substantial purchases of over 3 trillion SHIB tokens by 37,230 addresses. As SHIB nears this zone, potential selling pressure from traders aiming to sell at a limited loss might impede upward movements.
Dissecting the Long/Short Ratio and Market Sentiments
Analysis of the Long/Short Ratio for SHIB portrays a prevailing bearish sentiment as bearish bets have surpassed bullish positions over the past week. Presently standing at 0.96, this ratio has consistently remained below 1 since December 7, indicating a cautious market stance.
The abundance of short sellers signifies a prevailing expectation among traders for SHIB to sustain its bearish trajectory in the near term.