- Shiba Inu reclaimed a support zone that had existed since mid-March.
- The increased buying pressure could see the token begin its recovery.
Shiba Inu [SHIB] showed a downward trend in the lower timeframe charts over the past month.
Yet with Bitcoin [BTC] While trading within a certain range and showing signs of consolidation post-halving, altcoins may experience additional volatility.
The reduced correlation between Shiba Inu and Bitcoin could help the bulls force a recovery.
A retest of past support could determine the next direction
Source: SHIB/USDT on TradingView
The market structure on the 12-hour chart was bullish, but last month’s pullback left the internal structure bearish.
SHIB was unable to recover and faced resistance at the 50% Fibonacci retracement level.
Unless the price can rise above $0.0000275 and $0.0000295, a bearish short-term bias was justified. In the meantime, the recovery efforts seemed to be somewhat difficult.
The CMF traded above +0.05, indicating heavy capital inflows and buying pressure. The RSI on the 12-hour chart stood at 47 at the time of writing, but rose briefly above the neutral 50 in recent days.
This could be a harbinger of a step higher.
Network-wide accumulation was a huge positive
The 30-day MVRV ratio has been negative for most of April. This showed that the holders were at a loss and lack of conviction. The average coin age has also increased significantly over the past six weeks.
Together with the MVRV, this meant a good buying opportunity. Weighted sentiment has also been positive in recent days, indicating a sentiment shift in favor of the bulls.
Realistic or not, here is SHIB’s market cap in BTC terms
At the time of writing, SHIB was trading on $0.00002486. The near-term technical outlook remained bearish, but traders should be prepared for a rise.
A selloff in the Bitcoin market could still drag Shiba Inu and other altcoins lower.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.