- Shiba Inu has fallen below the VRVP’s value area
- The $0.00002 level is a key resistance zone, and bulls need to reclaim it before the longer-term bias can be flipped
The second-largest memecoin by market cap, Shiba Inu [SHIB] has shed nearly 30% of its value over the past month. It was unable to hold on to the range formation from early January and at press time, its downtrend continued apace.
At the time of writing, volume indicators showed that the $0.00002 resistance zone would be key to its bullish efforts. While the momentum was severely against SHIB bulls, market-wide sentiment was weak as well.
Key to solving Shiba Inu’s woes
The drop below the 61.8% Fibonacci retracement level in mid-December was the domino that started the downtrend. Memecoins had run rampant in November but by December, their mini-altseason had ended.
The $0.00002 region, a bullish order block from September, was retested as resistance on 31 January. Since then, SHIB has slumped by another 23% on the charts. However, the CMF flashed a slightly hopeful signal. It had a reading of +0.02 at press time, after spending the second half of January below -0.05.
The CMF’s uptick can be a sign that capital outflows from the market have been slowing down, although they aren’t strongly bullish yet.
The Visible Range Volume Profile also highlighted the importance of the $0.00002-zone, forming the lower bound of the value area.
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Author: Akashnath S
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