Shiba Inu [SHIB] continued to trend downward, following the memecoin sector’s general weakness.
The fearful market sentiment and lack of appetite for memes meant most of the popular tokens in this category were facing a long-term downtrend.
The 1-day structure has turned bearish once more. In February, the imbalances on the 1-day timeframe (white box) were expected to be swept before the bearish trend resumed.
Their alignment with the Fibonacci retracement levels made the idea more compelling.
Yet, the bearish strength was too much to allow such a move. As things stand, a price bounce toward local highs appears unlikely. The move below the local support (dotted cyan) showed that a drop to $0.000005 was likely.
The A/D indicator continued to descend lower to highlight seller dominance. The MACD formed a bearish crossover below the zero line to indicate a momentum shift.
What are the next SHIB targets?
The 3-month liquidation heatmap highlighted $0.000008, $0.0000075, $0.0000067, and $0.0000062 as the overhead liquidity targets. A price bounce into these areas could trigger a liquidity sweep and a bearish reaction.
The 2-week heatmap showed that a move southward was imminent. Traders can await a liquidity sweep before assessing if a brief bounce toward $0.0000062 can occur.
Traders’ call to action – Sell the bounce
The former short-term bullish order block has been flipped from a demand to a supply zone. The moving averages and the MACD on the 4-hour timeframe highlighted the bearish momentum.
The A/D indicator’s downtrend in the past two weeks confirmed seller dominance.
A bounce toward the overhead supply zone and the $0.0000062 liquidity cluster would likely offer a selling opportunity. Below $0.000005, the $0.00000389 was the next price target.
Final Summary
- Shiba Inu showed signs that it would likely descend below the local support level.
- A respite rally to $0.0000062 was possible. A move beyond $0.0000084 is needed to challenge the established long-term bearish trend.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
