- Shiba Inu suffered a major retracement this past week.
- The market structure was bullish and analysis showed that bulls still have a good chance of recovery.
Shiba Inu [SHIB] posted losses as the crypto market faced a wave of selling pressure following a Bitcoin [BTC] sentiment shift. This shift could be short-lived, but that depends on whether BTC bulls keep prices from falling below $40.2k.
Canadian crypto exchange Uphold has delisted SHIB and Dogecoin [DOGE] among other things. Compliance with regulations was cited as the reason. A recent AMBCrypto analysis highlighted that the region SHIB was trading as a buy zone at the time of writing. Has anything changed since then?
The 50% Fibonacci retracement level has held
Source: SHIB/USDT on TradingView
The recent selling pressure came after the January 11 approval of the spot ETF. Like the rest of the market, SHIB prices fell sharply. However, Shiba Inu has a bullish market structure on the one-day chart.
The bullish order block (cyan) in H12 at $0.0000093 coincides with the 50% retracement level. So far, the bulls have managed to keep prices above $0.00000893.
A one-day trading session below this level would shift the demand zone towards supply.
Conversely, the RSI fell below the neutral 50, indicating a bearish shift in momentum. The OBV also saw a dip this past week, but still remained above the December highs.
The conflicting signals of momentum and price action are not a problem. The price action takes precedence every time, meaning the structure was more important here.
Social volume increased in January
Source: Santiment
The MVRV ratio has been on a steady downward trend since mid-December. The price fell below zero on January 18, but rose again at the time of writing to stand at 0.194%. This showed that, at least in the short term, the selling pressure from profit takers was coming to an end.
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The average coin age has increased during this time. This showed strong holders and network-wide accumulation of SHIB.
Social volume also increased in January. Together they pointed to a bullish bias.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
