Shiba Inu was trading at a crucial demand zone.
The fall to the 78.6% retracement level meant prices could continue to slowly bleed lower before a recovery.
Shiba Inu [SHIB] prices dropped by nearly 25% after the wave of selling on 3rd January. This was not isolated to the SHIB market. Bitcoin [BTC] shed 10.44% on the same day. However, both assets saw a bounce in prices.
AMBCrypto examined the Shiba Inu burn rates and what it could mean for 2024 prices in an earlier report. On-chain metrics also pointed toward a bullish bias, but investors might want to wait a while longer.
The 50% retracement level could be hotly contested
Source: SHIB/USDT on TradingView
The market structure of SHIB was firmly bearish. The RSI also fell below neutral 50 to reflect downward momentum.
The OBV has slowly fallen over the past month. This drop was a mere dip compared to the early December gains on the OBV.
Hence, selling volume has not been as steady or high as the buying was on the way upward.
Shiba I
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