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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- SHIB made up for third quarter gains after easing close to the July/August low.
- Demand in the derivatives market declined as sellers gained market control.
July’s meme coin hype is nowhere near resurfacing, amid a firm, bearish grip in August and September. In particular, Shiba Inus [SHIB] the rally of more than 75% between mid-June and mid-August has faded.
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SHIB was trading at $0.00000765 at the time of writing, below the December 2022 low of $0.00000779.
What’s next for SHIB’s price action?
Source: SHIB/USDT on TradingView
SHIB reached lower highs on the 12-hour chart, due to a bearish market structure bias. This bias could only be reversed and turn bullish if price action regained the low in the May range of $0.00000846.
In the meantime, the reversal of the support zone from $0.00000785 – $0.00000824 (red) to resistance further strengthened the influence of sellers. As such, sellers may lower SHIB to the bullish H12 order block of $0.00000713 – $0.00000727 (Cyan) or $0.00000698.
Conversely, bulls could see a glimmer of hope if SHIB regains its low in the May range of $0.00000846. The RSI has been below 50 neutral levels since mid-August, underscoring bearish pressure over the same period.
Interestingly, the CMF crossed the zero level at the end of August and did not break this level. This shows that despite the bearish pressure, SHIB recorded impressive capital inflows.
Demand in the derivatives market fell
Source: Coinalyse
According to Coinalyze, open interest rates improved between September 3 and September 6, but then eased. This shows that demand for SHIB has fallen over the past two days, reinforcing the bearish bias.
How many Worth 1,10,100 SHIBs today?
Similarly, the CVD (Cumulative Volume Delta) retreated southward from Sept. 6, underlining control of the seller’s market.
However, financing rates were green at press time, but have been fluctuating since September 1. So trace Bitcoins [BTC] movement is crucial for risk mitigation.