Shiba Inu: Here’s what’s blocking a 5% potential gain

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

• The previous low of $0.00000739 was a key level for lower-timeframe players.
• The Open Interest rate was up 16% at press time, but bulls didn’t have leverage yet. 

Shiba Inu [SHIB] reversed about half of the +9% losses incurred between 8 September and 11 September as of press time. The memecoin dipped to $0.00000695 amidst an extended bearish pressure over the last weekend (8-10 Sept). Although SHIB reclaimed the crucial H12 bullish order block (OB) of $0.00000713 – $0.00000727 (cyan), a key hurdle curtailed further upside. 

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Can SHIB bulls bypass the $0.00000739 hurdle?

The $0.00000739 level was a previous lower low on 4 September. The level was breached alongside the H12 bullish OB of $0.00000713 – $0.00000727 (cyan), extending SHIB’s drop to $0.00000695. 

At press time, bulls had reclaimed the H12 bullish OB but were yet to close above the $0.00000739 level, making it a sticky hurdle. It has led to two price rejections, but the drop hasn’t gone below the H12 bullish OB. 

Ergo, bulls could see a 5% gain if the H4 market structure is flipped to a bullish bias by closing above the $0.00000739 level. Even so, bulls must clear another roadblock and daily bearish OB of $0.00000758 – $0.00000766 (white) to realize the 5% potential gains. 

Meanwhile, the RSI has failed to cross the median 50 mark while the CMF headed southwards below the zero mark. It underscores weakened buying pressure amidst declining capital inflows. 

Besides, the 50-EMA (Exponential Moving Average) had a confluence with the $0.00000739 level on the daily chart. That meant the level was a crucial hurdle. A crack of the H12 bullish OB, cyan, will further weaken SHIB and could ease at $0.00000695. 

Demand for Shiba Inu improved, but…

Source: Coinglass

SHIB hit its lowest Open Interest rate in the first half of September after dropping to $13 million, up from $18 million recorded on 4 September. 

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

But the metric increased to $14 million, a little improvement in demand, which translated to about 16% in Open Interest in the past 24 hours before press time, as per Coinglass. 

However, funding rates fluctuated, and the Futures segment’s trading volume was down about 8% as of press time. The above negative readings could make the $0.00000739 level more sticky in the short term unless Bitcoin [BTC] retests the mid-range of $27k.