Shiba Inu has fallen below a level of support and is still on the decline, although the tiny increase in buying volume could be significant. This is because, despite the bearish market structure, this purchasing volume has stepped in at a legitimate retracement zone.
Now the question is whether a further decline or a bounce is more likely. Bitcoin was also expected to play a role in the coming days.
SHIB saw a big shift earlier this month, with swing lows and highs of $0.000022 and $0.00003, respectively. A set of Fibonacci levels (yellow) was plotted based on this surge. A short-term range (white) from $0.0000252 to $0.0000275 was also seen.
SHIB had fallen below the range lows and was headed towards the 78.6 percent retracement level at $0.0000236 at the time of writing. There was also a level of support at $0.0000239, from which SHIB just bounced.
The trading volume has been low during the last week. This indicated that market participants were not convinced by the decline of the previous several days.
There was an indication that SHIB was in retracement mode based on the retracement levels plotted.
SHIB in an accumulation phase?
In recent days, the RSI has not been much over neutral 50, implying that the trend and momentum have been negative for the better part of last week.
The Chaikin Money Flow also provided a similar story, indicating that selling pressure has been significant in recent days, as it has held below -0.05 for a long time.
Interestingly, the OBV has risen somewhat over the last ten days, despite the fact that SHIB has fallen on the price chart.
The price was also within the retracement levels of 61.8 percent and 78.6 percent. As a result, it’s possible that SHIB is in a state of accumulation.
The market action and momentum in the short term showed that the bearish trend would continue. At the same time, the minor increase in the OBV, as well as the Fibonacci levels, indicating that bulls still have some strength in the market as long as support at $0.0000236 remains.
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Source: https://coinpedia.org/price-analysis/shiba-inu-stuck-in-downward-spiral-whats-in-store-for-shib-price-in-coming-week/