Shiba Inu [SHIB]: Bulls can look to rally from this key support level

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

• SHIB bears maintained dominance with the price approaching its 2023 low.
• However, this key support level offered hope for bulls.

Shiba Inu [SHIB] almost reversed all its 2023 yields. After posting 95% gains to reach a Year-To-Date (YTD) high of $0.000015 in early February, the severe downtrend in March and April erased those gains with SHIB trading at $0.0000088, as of press time.

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With Bitcoin [BTC] posting 1.95% gains within the past 24 hours to reclaim the $27k price zone, there was a chance that Shiba Inu could use the $0.000008 support level to recover.

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Bears dominate but hope lies for bulls at the $0.000008 support level

The price action on the 12-hour chart showed the extent of bearish dominance in the market. SHIB has been on a steep downward trend since mid-April after the bears halted the bullish rally at the $0.000011 resistance.

As of the time of writing, SHIB had recorded a 13.03% loss in May alone. This signaled that bears were looking to further extend their dominance. However, all hope is not lost for the bulls. This was because the price was inching toward the key $0.000008 support level. This level served as a rallying point for bulls in January in the run-up to the YTD high.

The on-chart indicators posted positive signals to encourage bulls. The Awesome Oscillator (AO) posted a series of green bars in a row, even though it remained under zero. The Relative Strength Indicator (RSI) also climbed out of the oversold and stood at 36.1, as of press time.

However, a worrying sign for bulls is the lack of volume for SHIB. The On Balance Volume (OBV) showed that SHIB’s volume has been on a steady decline. This could be as a result of new memecoins such as PEPE and FLOKI gaining massive traction.

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

On-chain metrics suggest an ongoing accumulation trend

Source: Santiment

Data from Santiment revealed key insights into the potential for a bullish reversal. Since late March, the supply on exchanges has plunged significantly suggesting a bullish buildup. A rising slope on the mean coin age within the same period hinted at an ongoing accumulation trend.

A bullish reversal could be close for SHIB with the price approaching a key support level and accumulation signals from on-chain metrics.