Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Despite a bearish breakout from the range-bound formation, SHIB showed signs of bullish recovery.
- Financing rates were largely positive, indicating good recovery opportunities for buyers.
Shiba Inu [SHIB] broke out of its sideways structure with a bearish candle on the higher timeframes. However, as of the time of writing, the memecoin was showing signs of recovery.
Read Shiba Inu’s [SHIB] Price forecast 2023-24
Yet with Bitcoin [BTC] still below the $27,000 mark, it was also possible that the crypto market would experience a new wave of selling pressure.
Do bulls have the ability to rally?
Source: SHIB/USDT on Trading View
While the Shiba Inu market structure remained bearish at both the lower and higher time frames, buyers showed some positive signs of recovery.
The Relative Strength Index (RSI) rose sharply from the oversold zone and stood at 44 at the time of writing. This indicated increasing buying pressure as bulls look for a price recovery.
This increase in buying pressure resulted in a modest gain of 2.6% for buyers over the past day. However, a sustained bullish rally would require a more aggressive approach from buyers.
This was reflected in On Balance Volume (OBV), which continued to decline. So if bulls can climb the $0.000007 price threshold and BTC moves above $27,000, a sustained bullish rally could emerge.
Realistic or not, here is SHIB’s market cap in BTC terms
The funding rate could promote a bullish recovery
Source: Coinglass
Dates of Mint glass showed that the Shiba Inu funding rate was largely positive over the past five days. This could actively contribute to a bullish recovery in the short term.
Furthermore, the long/short ratio showed that longs and shorts were equivalent in terms of open positions. This showed that while a price increase from this level was possible, buyers should also be wary of further price declines.
Source: Mint glass