• Shiba Inu [SHIB] began the new year on a high note, rallying from $0.00000792 to $0.00000880.
• Bulls faced strong opposition from sellers when SHIB hit the bearish order of $0.00000855 on the three-hour chart.
• If the obstacle persists, SHIB could face another pullback to $0.00000822 in the next day or two.
Shiba Inu [SHIB] started the new year on a strong note, rallying from $0.00000792 to $0.00000880, providing over 10% gains in the same period. The rally followed Bitcoin’s [BTC] uptrend which further solidified the bullish sentiment surrounding SHIB. At press time, SHIB was trading at $0.00000849 and the 12-hour chart candlestick showed a shooting star with a long tail wick, indicating the intense opposition SHIB bulls faced from sellers.
The price rejection occurred in a bearish order of $0.00000855 that existed on the three-hour chart. If this obstacle persists (red zone), SHIB bulls could lose ground to bears, forcing a price drop to this level. SHIB dropped below its late December trading range of $0.00000822 to $0.00000836 (yellow lines). But the $0.00000792 support kept the downtrend in check, offering bulls strong support to launch a rally.
The rally started on 1 January 2023 but was forced to cool off after hitting the obstacle (red zone). The correction settled on the late December trading range support of $0.00000822. Nevertheless, another rally, at press time, struggled to overcome the obstacle. If the obstacle persists, SHIB could face another pullback to $0.00000822 in the next day or two. Therefore, if a trend reversal is confirmed, the level can serve as a short-selling target for bears.
The Relative Strength Index (RSI) and Money Flow Index (MFI) faced rejections at 50-mark and 60-mark, respectively. The RSI noted bearish divergence, indicating that the bulls lost momentum as the price moved higher. The MFI also faced rejection at 60-mark, indicating that the market lacked buying pressure to push it higher.
The price movement in the upcoming days will determine if SHIB can overcome the $0.00000855 obstacle and reach higher levels or if the bears will take control and drive the price lower. At the time of writing, SHIB bulls needed to be cautious and watch for any signs of a trend reversal in order to avoid any losses.