- Shiba Inu’s daily price chart had a bullish outlook as the memecoin traded below a resistance zone as of June.
- The overhead of liquidation levels could trigger a short squeeze before a bearish reversal in the second half of October
Shiba Inu [SHIB] was trending upward at the time of writing, but trading volume fell 4.4% in the 24 hours before press time. This was also accompanied by a decline in whale activity – a sign of reduced demand from SHIB whales.
Source: SHIB/USDT on TradingView
The memecoin bulls recovered well from the early October retracement that tested the fair value gap. Trading volume was above the average for August and September. The psychological resistance zone at $0.00002 stood in the way of the bulls.
This region has been a major obstacle since June. The RSI and market structure showed bullish dominance, but the OBV was less convincing. This lack of demand in October could delay efforts to break the bearish order block.
Declining volatility could help investors
The one-week volatility metric saw a sharp rebound in late September but has calmed down since then. The reduced volatility is a sign of consolidation, as we saw in the first half of September, before the strong rally.
The 90-day Shiba Inu MVRV ratio, in addition to the price, was higher. It increases the chances of profit-taking and selling pressure, but does not threaten the chances of a breakout.
Meanwhile, the Mean Dollar Invested Age was in an inexorable uptrend at the time of writing. This showed that investments stagnated and that old coins remained in their wallets.
Once this measure starts to decline, it would be an early sign of reduced stagnation and could herald a solid uptrend. This happened earlier this year in February and March and could happen again.
Short liquidations are piling up above SHIB’s press-time price
The three-month liquidation heatmap showed that the $0.0197-$0.0202 (1000SHIB, so three decimal places away) area was an area of interest. This magnetic zone could push Shiba Inu north.
Is your portfolio green? Check out the Shiba Inu Profit Calculator
Speculators even seemed noticeably willing to bet that 1000SHIB would be rejected again at $0.02. Their confidence could fuel a short squeeze, but spot demand is needed to support the memecoin’s breakout.