- Shiba Inu reclaimed a support zone that had been in place since mid-March.
- The increased buying pressure could see the token begin its recovery.
Shiba Inu [SHIB] was trending downward in the lower timeframe charts over the past month.
Yet, with Bitcoin [BTC] trading within a range and showing signs of consolidation after the halving, altcoins could see added volatility.
The reduced correlation between Shiba Inu and Bitcoin could help the bulls enforce a recovery.
Retest of the former support could set the next direction
Source: SHIB/USDT on TradingView
The market structure on the 12-hour chart was bullish, but the past month’s pullback meant that the internal structure remained bearish.
SHIB was unable to make a recovery, facing resistance at the 50% Fibonacci retracement level.
Unless it can climb above $0.0000275 and $0.0000295, a bearish short-term bias was justified. In the meantime, the attempts at recovery appeared to have some legs.
The CMF was above +0.05 and signaled heavy capital inflow and buying pressure. The RSI on the 12-hour chart was at 47 at press time, but briefly rose above neutral 50 in recent days.
This could be a precursor to a move higher.
Network-wide accumulation was a huge positive
The 30-day MVRV ratio has been negative for most of April. This showed holders were at a loss and a lack of conviction. Also, the mean coin age has trended firmly upward in the past six weeks.
Together with the MVRV, it signaled a good buying opportunity. The Weighted Sentiment was also positive in the past few days, highlighting a sentiment shift in favor of the bulls.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
At press time, SHIB was trading at $0.00002486. The short-term technical outlook remained bearish, but traders must be prepared for a move higher.
A wave of selling in the Bitcoin market could still drag Shiba Inu and other altcoins lower.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.