Shiba Inu (SHIB), a popular meme token in the cryptocurrency market, experienced a significant pullback on January 3, following strong selling pressure on Bitcoin (BTC). Experts had anticipated a price decline trend for the cryptocurrency, but it broke through the bearish market structure a week later.
A week prior to the pullback, a whale withdrew $10.27 million worth of SHIB from centralized exchanges, leading to speculation of an impending price increase. Shortly after, SHIB’s price surged nearly 10%, shifting the market structure back to bullish. The rise order block at $0.00000916, seen as a strong demand zone in late December, could be advantageous when combined with the 50% Fibonacci retracement level.
The altcoin tested the $0.00000827 level, corresponding to the 78.6% retracement, and experienced a significant rally. On January 7, SHIB faced another downturn, followed by a break above the previously mentioned rise order block a week later. At the time of writing, SHIB was trading just above this region. Its On-Balance Volume (OBV) increased in January, but momentum remained in favor of bears.
The Relative Strength Index (RSI) for the meme token struggled to surpass the neutral 50 mark. Analysis of the open interest (OI) trend over the past two weeks indicated a significant decline in OI as prices fell on January 3, with no recovery since. From January 8 to 11, price increases were not accompanied by a rise in OI, suggesting a lack of confidence in the futures market. In the last three days, OI showed a downtrend along with the price, indicating a short-term bearish sentiment.