• Shiba Inu (SHIB) began the new year with a 10% rally, however, it has since faced a price rejection at a bearish order block of $0.00000855.
• If the obstacle persists, SHIB could face another pullback to $0.00000822 in the next day or two.
• The Relative Strength Index (RSI) and Money Flow Index (MFI) faced rejections at 50-mark and 60-mark, respectively.
Shiba Inu (SHIB) has started the new year on an encouraging note, rallying from $0.00000792 to $0.00000880, offering a 10% gain in the same period. The rally was in tandem with Bitcoin’s (BTC) uptrend at the same time. At the time of writing, SHIB was trading at $0.00000849. The 12-hour chart showed a shooting star pattern with a long tail wick, indicating strong opposition from sellers. This price rejection occurred in a bearish order of $0.00000855 that existed on the three-hour chart. If this resistance continues to hold (red zone), SHIB bulls could succumb to the pressure from bears, leading to a price drop to this level.
The price dropped below its late December trading range of $0.00000822 – $0.00000836 (yellow lines). However, the $0.00000792 level provided strong support for the bulls, allowing them to launch a comeback. The rally started on 1 January 2023 but was soon thwarted by the resistance level (red zone). The correction settled on the late December trading range support of $0.00000822. Nevertheless, another rally was initiated, at the time of writing, but failed to break the obstacle. If the resistance holds, 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 technical indicators, such as the Relative Strength Index (RSI) and Money Flow Index (MFI), also faced rejections at the 50-mark and 60-mark, respectively. This could be further evidence of the strong selling pressure that SHIB is facing at the resistance level. If the bulls manage to break the resistance, the next target would be the $0.00000880 mark. On the other hand, if the bears succeed, the price could drop to the $0.00000822 range.