Shiba Inu eyes range highs, but obstacles prevail

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

• H4’s structure was bearish at press time. 
• Ongoing liquidity squeeze could affect a strong rebound. 

Shiba Inu [SHIB] has been in a tight consolidation range since 10 June. The range formation followed a sharp drop and retest of two-year lows near $0.00000543. 

Read Shiba Inu [SHIB] Price Prediction 2023-24

In the past few days, there was a renewed interest in the meme-coin after Bitcoin [BTC] rallied to $26k, up from $24k. But any faltering at $26.6k resistance for BTC could make SHIB’s range high a key obstacle for near-term bulls. 

Besides, Shiba Swap, a native DEX (Decentralized Exchange) for SHIB saw a decline in TVL (total locked value) from $25 million on 1 June to about $21 million at the time of writing. It highlighted the liquidity squeeze and lack of investors’ interest in adding more volume to SHIB’s projects. 

Can SHIB clear the range-high hurdle?

Source: SHIB/USDT on TradingView

SHIB has been oscillating between $0.00000651 and $0.00000698 for the past seven days. At press time, price action retested the range high of $0.00000698, which aligned with the pocket within the 23.6% – 38.2% Fib levels. The Fib tool was based on the May swing high and June swing low. 

The RSI (Relative Strength Index) climbed above the 50-mark but eased near 60 after hitting the range high ($0.00000698). Similarly, the CMF (Chaikin Money Flow) has stayed above the zero mark for a while, indicating positive capital inflows into SHIB. 

But the H4’s market structure was still bearish at the time of writing. A close above the range high could flip the structure to bullish. But bears could form a strong defence at 38.2% Fib level ($0.00000725) or $0.00000748. 

Also, a price rejection at the range high ($0.00000698), especially if BTC falters at $26.6k, could set SHIB to retest the range low of $0.00000651. 

Supply on exchanges dipped; sentiment remains negative

Source: Santiment

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

The mild recovery from 11 June corresponded with a slight uptick in volume and improved sentiment. It means demand and investors’ confidence improved.

Similarly, the short-term selling pressure eased, as indicated by a dip in supply on exchanges. But the sentiment was still negative, and volumes were muted at the time of writing.