Shiba Inu's Bearish Outlook: Support Zone Collapse and Bitcoin's Impact

Shiba Inu faces a bearish short-term market structure due to the lack of demand at a key support zone, despite an earlier bullish momentum noted by AMBCrypto. The BTC trend could be a deciding factor, with a decline in BTC prices potentially hurting the meme coin in the short term.

Shiba Inu's Short-Term Bearishness: Support Zone and Bitcoin's Influence

Shiba Inu (SHIB), the popular meme cryptocurrency, has exhibited a bearish market structure in the short term, raising concerns among investors. Despite a recent surge in bullish momentum, the lack of demand at a key support zone has cast a shadow over the coin's immediate prospects.

Weakening Support Zone and Bearish Momentum

In a previous analysis, AMBCrypto highlighted the $0.0000235 region as a potential support level for SHIB. However, recent price action has challenged this support, with the coin struggling to maintain its position above it. The Relative Strength Index (RSI), a technical indicator that measures the strength of price movements, has also dipped below 50, indicating that bearish momentum is gaining traction.

Balanced Buying and Selling Pressure

Further analysis of the On-Balance Volume (OBV) indicator reveals a similar trend. The OBV has been unable to break through key resistance levels in recent weeks, suggesting that buying and selling pressure are roughly balanced. This lack of clear dominance from either buyers or sellers points to a potential period of consolidation or further decline for SHIB.

Bitcoin's Influence and Resistance Levels

The price of Bitcoin (BTC), the dominant cryptocurrency, is closely correlated with SHIB and other meme coins. At the time of writing, BTC was trading at $63.7k and could potentially drop to $59.4k in the near future. Such a move could have a negative impact on SHIB's price, as investors may seek to reduce their exposure to riskier assets.

Bullish Targets and Tepid Sentiment

On the upside, the $0.00003 level remains the short-term bullish target for SHIB. However, the coin faces significant resistance at this level, and a breakout seems unlikely at the moment. Sentiment analysis also paints a somewhat bearish picture, with the Weighted Sentiment and Social Dominance indicators showing a decline in positive sentiment and reduced social media engagement around SHIB.

Conclusion

Shiba Inu's short-term outlook appears uncertain, with the coin struggling to maintain support at a key level and facing headwinds from Bitcoin's potential decline. Investors should exercise caution and consider the broader market conditions before making any investment decisions. The metrics analyzed in this report suggest that a period of consolidation or further downside is possible for SHIB in the coming weeks.