The price structure of Shiba Inu is bearish, with local lows becoming attractive short-term price targets.
Divergence or reversal signals in the lower time frames, combined with greater demand, may be necessary conditions for a trend reversal.
Since March, Shiba Inu [SHIB] has traded in a range of $0.0000115 to $0.0000142. After a successful breakout in the first half of May, the meme coin fell below the support level of $0.0000152. In the process, it formed a descending triangle pattern.
AMBCrypto's analysis indicates that this pattern may accompany a price drop. This has already happened and has tested the range low. Where might SHIB head next?
Will Shiba Inu sink into the next set of liquidation levels?
From a technical analysis perspective, the outlook for SHIB bulls is not optimistic. After breaking below the support level of $0.0000152, the currency pair tests the resistance level again, marking a supply area. The market structure has been bearish since late May and remains unchanged.
For the past three weeks, the RSI has remained below the neutral 50, confirming the structural judgment. The OBV has also been trending down since late May, indicating an increase in selling volume.
On Friday, June 13th, Shiba Inu dropped to $0.0000114. As of the time of writing, the local support level at $0.000012 is still holding. This situation may change in the next 24-48 hours. The downward trend line formed last Friday seems to be tested soon.
The liquidation heatmap with a 3-month lookback confirms this statement. It reveals two liquidity clusters near the price. The cluster further away from the price is located at $0.0000136. The closer magnetic zone is at $0.0000114, which is last Friday's low.
Intense liquidation levels near the local lows and slightly below that point may be touched soon, but this is not guaranteed. At the same time, it should not be assumed that the range low will see a bullish reversal. This is because the OBV is declining.
Traders can pay attention to the area between $0.0000110 and $0.0000114 to observe signs of a bullish reversal in the lower time frame charts or potential bullish divergence in the coming days. This could be a clue for going long. Until then, the short-term trend may still be bearish.
