Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The FOMC minutes tipped bears to overwhelm the market.
- SHIB’s pullback reached a May high of $0.00000903.
Shiba Inu [SHIB] Down 7% after FOMC (Federal Open Market Committee) minutesreleased on August 16, documenting the reasons for July’s aggressive stance. Bitcoin [BTC] fell below $28.5k during the same period, causing bears to overwhelm the market.
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However, SHIB’s pullback reached its May high of $0.00000903 and was easing slightly at the time of writing. BTC also reached crucial trendline support. But with the recent decline, the SHIB-BTC short-term correlation quickly turned positive.
Although the 30-day price correlation was negative, the recent positive correlation calls for close tracking of BTC movement for optimized settings.
SHIB retests May range-high
Source: SHIB/USDT on TradingView
SHIB’s price level at the time of writing was attractive to bulls according to price chart analysis. The retracement had eased to a daily bullish order block of $0.00000876 – $0.00000948 (Cyan).
On the zoomed out H4 chart, the above bullish OB is aligned with rising trendline support and the previous May range high of $0.00000903. The May range high had previously halted the retracement between August 6 and August 7.
Ergo, the confluence area could be a solid bullish zone and a buying opportunity, targeting overhead roadblocks at $0.00001 or $0.000011.
But SHIB’s coefficient correlation to BTC was positive at +0.9 at the time of writing, and the RSI and CMF registered negative values. With BTC currently weak, a strong SHIB rebound from above the bullish zone could depend on BTC reversing recent short-term losses.
Conversely, a break below the trendline support (orange) could end at the next $0.00000725 – $0.00000824 (white) support zone.
Network activity dropped and that means…
Source: Sentiment
According to the intelligence data platform SanitationSHIB’s Network Growth and 90-Mean Coin Age have fallen recently.
It illustrates that newly created addresses (interest on the asset) fell and massive exchanges of the tokens took place between respective addresses. Both can be taken as bearish signals.
In addition, supply on exchanges peaked slightly at the time of writing, indicating a slight increase in short-term selling pressure.
How many 1,10,100 SHIBs worth today?
A look at the derivatives segment revealed conflicting signals, he says Mint glass. More short positions were destroyed within a 4-hour window, suggesting a likely price reversal to the upside.
But volume and open interest fell by more than 10% and 15% in the past 24 hours, underlining the prevailing bearish grip on the futures market. So the confluence area ($0.00000876 – $0.00000948) could be a great buying opportunity, but only if BTC reverses recent losses.