Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
Shiba Inu [SHIB] suffered more than 5% losses on Monday, June 5 and plunged to December lows. The dive followed From Bitcoin [BTC] sharp drop from $26k to $25k amid a Binance lawsuit that unnerved the crypto market.
Despite the Crypto Fear and Greed Table of contents firmly on the “Fear” position at press time, current price levels were not a decisive buying opportunity with weak BTC.
How many are 1,10,100 SHIBs worth today?
Moreover, more downward movement cannot be overruled, especially if next week’s FOMC meeting takes another aggressive stance.
Will sellers increase their profits?
Source: SHIB/USDT on TradingView
A weak BTC below $26.6k could give SHIB sellers more edge in the market. At the time of writing, the Relative Strength Index (RSI) has reached the oversold zone. This highlighted the recently increased selling pressure the memecoin was under.
In addition, On-Balance Volume (OBV) declined further, indicating limited demand and trading volumes ahead of a strong rebound capable of breaking the low $0.00000833 range. Since May 8, SHIB has fluctuated between $0.00000833 and $0.00000911, but broke the range after the US SEC-Binance lawsuit.
The decline left a Fair Value Gap (FVG) zone of $0.00000816 – $0.00000845 (white). In addition, the low range also matched the FVG, which could make it a solid bearish area.
A negative price reaction from this level could push SHIB to bounce back to lower support levels of $0.00000748 and $0.00000698. These levels can act as short selling targets in such a downswing scenario.
A close above the FVG zone will invalidate the above bearish statement. Such an upward move could end at the mid-level of $0.00000872 or the high range.
CVD spot on a steady decline
Source: Coinalyse
Is your wallet green? look at the SHIB Profit Calculator
Since late May, SHIB’s Cumulative Volume Delta (CVD) spot has been steadily falling. This meant that buying volumes decreased as selling pressure increased.
As such, sellers have firmly controlled SHIB’s market for a while. The trend could continue unless BTC triggers a trend reversal.