Shiba Inu’s recovery faced difficulty – Where can investors look for gains? – CryptoNewsTo

Shiba Inu’s recovery faced difficulty – Where can investors look for gains?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • SHIB attempted a recovery after finding a steady break at $0.00001216.
  • A spike in short-term sell pressure could undermine a strong recovery. 

Shiba Inu’s [SHIB] optimistic recovery met countering efforts from bears. After the early February FOMC announcement, Bitcoin [BTC] lost hold of the $23K zone, setting the meme coin to plunge. 

Read SHIB Price Prediction 2023-24

SHIB found steady support at $0.00001216 and fronted a price recovery. However, it failed to bypass the hurdle at $0.00001316, giving bears an upper hand. At press time, the meme coin’s value was equivalent to its November 2022 level. 

Is a retest of the 50% Fib level likely?

Source: SHIB/USDT on TradingView

At press time, BTC struggled to reclaim its $22K zone. Similarly, SHIB faced difficulty closing above the 61.8% Fib level of $0.00001269. With a bearish structure, as indicated by the RSI, SHIB could retest the 50% Fib level. 

Such a move would allow investors to benefit from a short-selling opportunity at $0.00001216. The RSI faced rejection at the mid-level, further reinforcing the bears’ advantage at press time. 

How much is 1,10,100 SHIBs worth today? 

However, the Money Flow Index (MFI) has always rebounded from the mid-level on the 12-hour timeframe chart. Therefore, if the pattern repeats, it will indicate an increasing demand for SHIB.

Any uptick in buying pressure would tip bulls to overcome the hurdle at $0.00001316. But the move will invalidate the bearish bias described above. 

SHIB saw short-term pressure as bearish sentiment increased

Source: Santiment

SHIB recorded little demand as short-term supply increased. According to Santiment, the Supply on Exchanges recorded an uptick, indicating that more SHIB were moved to the exchanges for offloading.

It denotes the short-term sell pressure which could delay SHIB’s long-term recovery. 

Correspondingly, the Supply out of Exchanges registered a drop, indicating that demand for SHIB was little compared to the supply. Such a supply-demand imbalance could set SHIB for a short-term devaluation. 

In addition, SHIB’s positive weighted sentiment has waned significantly since 3 February – after the FOMC announcement. Sobriety set in after a temporary market euphoria following the 25-basis Fed rate hike.

The negative sentiment and bearish outlook could undermine the meme coin’s recovery. 

However, a bullish BTC and a surge into the $22K zone could boost SHIB’s recovery, so it is worth tracking the king coin’s price action. 

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One thought on “Shiba Inu’s recovery faced difficulty – Where can investors look for gains?

  1. Thoroughly enjoyed your article! The insights are valuable, and I’m curious if you plan to add more images in your upcoming pieces. It could make the content even more captivating for readers.

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