Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- SHIB maintained its bullish streak over the weekend.
- Open interest rates also increased over the weekend.
Shiba Inu [SHIB] extended its bullish streak over the weekend (Aug 5-6). The memecoin posted additional gains of +25% between August 4 and August 5, rising above its May high of $0.00001020. But it registered a sharp retracement on Sunday (Aug. 6) and could give bulls another long shot if the uptrend stays on course.
Is your wallet green? look at the SHIB Profit Calculator
Should you bid on these levels
Source: SHIB/USDT on TradingView
The strong rally late last week (from August 3rd) was led by the bullish breaker block of $0.00000785 – $0.00000824 (cyan). During the upswing, SHIB’s price action rose above the previous price range in May, but stalled above the May high.
SHIB noted a sharp retracement near the weekly bearish order block (OB) at $0.00001050 – $0.00001089 (red). In addition, the rally over the weekend produced a price imbalance and FVG (fair value gap) of $0.00000886 – $0.00000938 (white).
If bullish sentiment prevails, the retracement could ease at the March/April support of $0.00000965 or the confluence of the FVG and the previous range high ($0.00000903). If so, a rebound could yield two possible long set-ups.
The first and conservative approach calls for a retest of the $0.00000965 targeting $0.00001188. Second, desire to retest above the confluence, at $0.00000940, with take profit at the recent high ($0.00001050).
A drop below the FVG zone of $0.00000886 – $0.00000938 (White) invalidates the bullish idea. A retest of the bullish breaker block (cyan) could be likely in such an extended pullback scenario.
The RSI and CMF registered positive readings, underlining the strong buying pressure and capital inflows of recent days.
Purchasing volumes improved slightly
Source: CryptoMeter (SHIB Metrics on August 6, 2023)
At the time of writing, sell orders in the market were up >290%, capturing the weekend’s sharp pullback. Nevertheless, buy orders in the market also increased, with an overall buy volume of 50.26% versus a sell volume of 49.74%.
The conclusion from above is that the price can go either way given the small spread between buying and selling volumes.
How many Worth 1,10,100 SHIBs today?
But the futures market had a bullish bias suggesting likely further upside potential. For example, open interest rates and volume increased by +8% and 130% respectively according to Mint glass.
If the uptrend continues, the FVG and March/April support will be key interest rate levels for SHIB bulls.