Shiba Inu bounces, but maintains its bearish structure

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Shiba Inu showed that a jump was likely, but whether such a jump would follow was unclear.
• Demand and sentiment have not yet been strong enough to warrant expectations of a move towards $0.00001, but this could change.

Shiba Inu [SHIB] dropped 32% from Aug. 14 to Aug. 17 to reach a higher timeframe support zone. While the meme coin found some demand in that area, the lower time frame price charts showed that the bears were dominant.

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To change this, a large influx of demand was needed. There has been a slight uptick in the aforementioned demand zone in recent days, which could be triggered by news of the increased burn rate.

Can SHIB buyers succeed in changing the market structure?

Source: SHIB/USDT on TradingView

Marked orange at $0.00000871 was the recent lower high that SHIB recorded. On the 2-hour chart, this was the level that had to be surpassed before the market structure could turn bullish. Still, resistance to a higher $0.00000846 (white) time frame would likely hamper buyers’ efforts.

In the 12 hours before press time, Shiba Inu rose 9.27%. The OBV is up slightly and the RSI has crossed the neutral 50 mark, signaling bullish momentum. Thus, the evidence supported a further rise to the $0.00000871 level.

A rejection from that level would indicate that a range formation was likely to occur, with $0.00000776 as the lowest range. On the other hand, a move past the $0.000009 resistance would signal that SHIB was probably ready to move all the way north to the next resistance at $0.0000107, which was of interest on the higher time frames.

The numbers showed no positive sentiment

Source: Sanitation

Data from Santiment showed that the MVRV ratio (30 days) was negative, suggesting that the meme coin was undervalued. Still, weighted sentiment was barely positive after the recent steep losses. The average coin age has increased over the past five days, which should encourage buyers.

Source: Mint glass

How much are 1, 10 or 100 SHIB worth today?

The Open Interest chart has been in a strong downward trend since mid-August. However, if this starts to change in the coming days, it could indicate that bullish sentiment is creeping into the market.

An increase in the price of Shiba Inu alongside the OI would be a signal that speculators are providing. This development could be critical for SHIB to break local resistance and move towards $0.00001.