Cryptocurrency markets’ popular meme token Shiba Inu (SHIB), faced a deep pullback on January 3rd following strong selling pressure on Bitcoin (BTC). Experts believed the cryptocurrency was poised for a price decline trend, but it broke its bearish market structure a week later.
Whale Activity in SHIB
A week ago, a whale withdrew SHIB worth $10.27 million from centralized exchanges. This led to speculation that prices might be ready to rise, and a few days later, prices showed an increase of nearly 10%. This shifted the market structure back to a bullish direction. The rise order block at the $0.00000916 level at the end of December is seen as a strong demand zone. Its conjunction with the 50% Fibonacci retracement level could be an advantage. However, selling pressure significantly increased in January.
In the altcoin, the $0.00000827 level, which is the 78.6% level, was tested and saw a significant rise. On January 7th, SHIB faced another decline. This was followed by a break of the structure indicated as a rise order block a week later. At the time of writing, SHIB was trading just above this region. Its OBV saw a rise in January, but the momentum continued to favor the bears.
Current Data on SHIB
In the meme token, the relative strength index (RSI) struggled to surpass the neutral 50. Analysis of the open interest (OI) trend over the last two weeks to measure short-term market sentiment showed that OI significantly decreased as prices fell on the 3rd of the month. Since then, OI has not recovered. From January 8th to 11th, increases in prices were not accompanied by an increase in OI. This could indicate a lack of confidence in the futures market. In the last three days, OI showed a decline along with the price, indicating a short-term downtrend.