Key Points
- Shiba Inu has a bearish short-term market structure due to a lack of demand at a key support zone.
- The trend of Bitcoin could be the deciding factor for Shiba Inu in the upcoming week.
Shiba Inu’s current market structure is bearish in the short term. This is primarily due to the absence of demand in a crucial support zone.
An AMBCrypto analysis had previously predicted an 18% rise in Shiba Inu’s value. Although the bullish momentum has decelerated, it’s anticipated that a support zone might deter sellers.
Bitcoin’s Impact on Meme Coin Prices
At the time of reporting, Bitcoin was trading at $63.7k and there’s a possibility it could drop towards the $59.4k liquidity again. This potential decrease could negatively affect the prices of meme coins in the short term.
In the past fortnight, Shiba Inu bulls have found encouragement in the $0.0000235 region being flipped to support. However, the Relative Strength Index (RSI) stood at 45, indicating that the bearish momentum had a slight edge.
Shiba Inu’s Future Depends on Bitcoin’s Trend
Similarly, the On-Balance Volume (OBV) was unable to surpass two crucial levels from the past two weeks. This suggests that the buying and selling pressures are balanced, with neither side having a distinct advantage. Therefore, Bitcoin’s trend could potentially determine Shiba Inu’s direction in the upcoming week.
The Weighted Sentiment for Shiba Inu was marginally positive. However, other metrics have been declining alongside the price. Social Dominance has decreased over the past six months, reflecting a reduction in social media engagement around Shiba Inu.
The Open Interest also experienced a decline over the past three days as the meme token lost its bullish momentum in the lower timeframe. These metrics are likely to rise if the prices do, which could be influenced by Bitcoin’s trends.
Please note that the information provided does not constitute financial, investment, trading, or other types of advice. It is solely the author’s opinion.
