Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Price action eased below D1 bearish order block.
- The open interest rate fell ahead of the Fed’s decision.
Since the second half of June Shiba Inu [SHIB] fluctuated between crucial levels of $0.00000700 – $0.00000850. A closer look at the charts revealed that the extremes of the range coincided with important order blocks worth noting, especially for macro traders focusing on volatility ahead of the Fed’s July 25/26 decision.
Read Shiba Inus [SHIB] Price prediction 2023-24
In the meantime, Bitcoin [BTC] managed to close a daily session above $30k on Sunday, July 23. That was a remarkable celebration, as the King coin had struggled to hold a daily candlestick session above $30,000 since Wednesday, July 19.
For BTC, the $29.3k – $29.5k remained an important level to watch to determine market direction before and after the Fed’s decision. A break below the range low could provide an edge, while a convincing zone defense could strengthen bulls across the market.
Which way will SHIB go?
Source: SHIB/USDT on TradingView
For perspective, order blocks (OB) are areas of large trades placed by large or institutional players. In most cases, the price action reacts from these areas. Thus, confirmation or invalidation of the order blocks can determine market trends and sentiment changes.
So far, SHIB has faced price rejections at the daily chart’s bearish OB of $0.00000785 – $0.00000824 (red).
If the Fed’s decision unnerves investors, the lower support zones, particularly the H4 bullish order blocks of $0.00000733 – $0.00000749 (White) and $0.00000698 – $0.00000719 (Cyan), will be of great interest to lower time frame traders looking for buying opportunities.
Above the D1 bearish OB and roadblock lies the previous low range of $0.00000850. SHIB can confirm additional bullish intent only if it closes above the previous range low.
Meanwhile, the Relative Strength Index teetered near the neutral level, while the On Balance Volume recorded sideways movement. It reinforces a neutral position and the calm before the storm (volatility) caused by the Fed decision.
How many Worth 1,10,100 SHIBs today?
The futures market flashed negative signals
Source: Coinalyse
According to Coinalyze’s 1-hour chart, CVD (Cumulative Volume Delta) and Open Interest (OI) rates have moved south since mid-July.
It shows that buying volumes and demand in the futures markets for SHIB have declined over the same period – a downward trend. Thus, traders with a lower time frame may want to wait for a retest of the lower support zones (H4 order blocks) before taking any steps.
