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- SHIB bulls failed to see any calm as the aggressive selling pressure continued.
- In addition, active deposits on exchanges were on the rise.
Shiba Inu [SHIB] continued its massive decline, posting losses of 10.4% in the past seven days. A recent price report highlighted the meme coin’s lack of volume and bullish momentum. This caused SHIB to trade below the $0.00001 resistance since May 1.
Read Shiba Inus [SHIB] Price Forecast 2023-24
Bitcoins [BTC] moving below $28k could accelerate the process of SHIB’s price decline even further.
Sellers took full advantage of the bearish momentum
Source: SHIB/USDT on trade view
The SHIB price dip started from the $0.000011 price zone considering the H4 time frame. The confluence of the bearish order block with the resistance level led to a strong downward move. The bearish momentum caused the price to breach three other support levels to push SHIB to the January lows of $0.00000088, as of writing.
This highlighted the strong bearish push in the market. The Relative Strength Index (RSI) remained in the oversold zone for more than 48 hours with a reading of 25.7 at the time of writing. The On-Balance Volume (OBV) also continued to decline.
Despite the bearish momentum, one indicator suggested a bullish reversal could be imminent. The Chaikin Money Flow (CMF) rose sharply to 0.09.
The $0.000008 support level acted as the bullish springboard for the January SHIB rally. With the price approaching this support level again, SHIB could soon see a bullish rally.
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SHIB sentiment remained heavily bearish
Source: Sentiment
Dates from Sanitation showed that active deposits on exchanges were on the rise for SHIB, even as the price continued to fall. This indicated continued selling pressure in the short to medium term.
In addition, Open Interest continued to fall alongside falling prices from May 6, showing that traders were still actively shorting Shibu Inu. This was a sign of significant bearish sentiment.
Source: Coin analysis