After breaking above its descending channel last week, Shiba Inu managed to incline by 28%. As predicted in a recent article, SHIB deleted a zero from its price and surpassed the $0.000011 mark. The overbought conditions called for a correction, and as a result, SHIB has already printed two consecutive red candles on its daily chart.
Earlier during the day, SHIB attempted to break above $0.1061. However, it was resisted by the 38.2% Fib level. As shown below, the same level roadblocked SHIB’s path in November last year, post which it entered into the highlighted bearish structure.
So, for any further advancement from this point to be sustainable, it is quite crucial for SHIB bulls to come through.
Also Read: Will Shiba Inu Delete Another ‘Zero’ This Week?
Gauging The Sentiment
Over the past 24 hours, the top 100 Ethereum whales have bought SHIB worth $4.2k. In the same timeframe, however, they have sold tokens aggregately worth $12,283. Furthermore, data from ITB confirmed that the bears had a slight upper hand.
Simplistically, the bulls and bears indicator tracks the number of addresses that purchased or sold more than 1% of the total amount of volume traded on a given day. So, those who bought more than 1% of the total volume are classified as bulls, and those who sold more than 1% fall under the bears’ category.
So, with selling overshadowing buying and the pendulum inclining more towards bears, the conditions are currently not favorable to support another uptick.
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From the on-chain perspective also, Shiba Inu is trading quite close to one of its major resistance clusters. In the price bracket between $0.000011 to $0.000014, 134.4k addresses have bought a whopping 113.89 trillion SHIB tokens.
So, if the broader market continues rallying and SHIB rides along the same wave, it will be hindered by these participants. More so, because they’d be triggered to cash out as and when they break even.
Thus, a correction seems to be on the cards for now for Shiba Inu. In an event of the same, it could fall back to either $0.00000987 [MA] or $0.00000953 [23.6% Fib level]. Only after it re-gains enough bullish momentum, it’d be in a position to take off again.
Source: ITB