Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The bulls have defended the December lows since the mid-August dump.
- However, open interest rates remained muted below $20 million.
Shiba Inu [SHIB] maintained its price consolidation above the December low of $0.00000779 since the mid-August dump. This move allowed SHIB to avoid further losses after losing more than 20% in two consecutive weeks between August 14 and August 28.
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However, SHIB was poised to end August in the red based on monthly performance. But the bulls are flatly defending themselves at the December low and can continue as Bitcoin [BTC] crosses this path.
The December low could hold if BTC continues down this path
Source: SHIB/USDT on TradingView
While BTC’s pump and subsequent move above USD 27,000 on August 29 improved market sentiment, the altcoin market did not register any substantial movement. BTC was up +6% while SHIB only gained 1.8% on the same day.
But the mild pump was rejected at the previous May low of $0.00000846. SHIB has been hovering above the December low ($0.00000779) since mid-August, with the low in the May range acting as immediate resistance.
At the time of writing, BTC’s price had declined and returned to mid-May at around $27,000. If SHIB defends the middle class as support in the coming hours/days, it could also continue to defend the December low.
The bearish breakout from the above range could allow SHIB to grace the $0.00000698 support.
Meanwhile, the RSI briefly improved but retreated below the 50 median, illustrating subdued buying pressure. The CMF also moved sideways towards zero, showing stagnant capital inflows, strengthening the neutral position.
Open interest also muted
Source: Coinglass
Read Shiba Inus [SHIB] Price Prediction 2023-24
A look at demand on the derivatives side also showed muted action. Open Interest (OI) rates remained below $20 million for one week as of August 22. It reinforces a stagnant demand on the futures market, a neutral trend.
however, the data on liquidations showed more longs liquidated in the past 24 hours before publication in all timeframes. The trend indicates a solid bearish bias in the near term, but a fall in BTC below $27,000 could confirm such a tendency.
