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- The bulls were exhausted after an intense battle in a support zone over the past two weeks.
- This development could see SHIB fall another 15% in May.
Shiba Inu has moved lower in the price charts after the rejection at the $0.0000117 resistance on April 16. The Shiba Inu community also had some issues with the development team, which came to the fore after the decision to limit Bone ShibaSwap’s listing [BONE].
Read Shiba Inus [SHIB] Price Forecast 2023-24
A recent price report highlighted the importance of the support zone at $0.00001. In recent hours, this area has given way after the bulls have run out of holding on. Where can SHIB go now?
Short sellers can wait for a retest and rejection at the bearish breaker
Source: SHIB/USDT on TradingView
The H4 bullish order block at $0.00001 was highlighted in cyan. It also has a confluence with a higher time frame support level at $0.0000998. However, this level has been exceeded in the last 48 hours. In addition, the March lows at $0.00000965 were also lost.
This development showed strong bearish sentiment in the market. The former bullish order block is likely to act as a bearish breaker on retest and could provide short sellers with an opportunity to short the asset.
The RSI stood at 28 and showed significant downward pressure, although the CMF has not yet fallen below -0.05.
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Therefore, the CMF hinted that the selling pressure was not yet dominant, but the price action emphasized the bearish intent. A retest and rejection of the $0.00001 area will likely send Shiba Inu down to the $0.0000079 level.
SHIB sentiment has been heavily bearish over the past week
Source: Coin analysis
Open Interest began to rise alongside falling prices after April 29, showing that speculators were actively shorting the Shiba Inu market, signaling extreme bearish sentiment. In recent days, short-selling seemed to be declining.
Still, sentiment remained in favor of sellers. Falling OI and prices over the past two days were indicative of discouraged buyers. Along with the price action, it highlighted the likelihood of further losses for Shiba Inu.