Shiba Inu Bearish Continuation Targets 12% Drop to $0.00000523

Shiba Inu is currently reacting after a key order block rejection, and analysis projects bearish continuation towards a lower liquidity zone.

Notably, Shiba Inu ($SHIB) is showing this continued sign of weakness on the 4-hour timeframe, as highlighted by Crypto Patel’s X analysis. While the token has increased 3.2% since the start of today, a broader view of its recent price action points toward a possible move lower as selling pressure builds.

Key Points

• Shiba Inu shows continued sign of weakness on the 4-hour timeframe, setting up a bearish continuation pattern.
• The asset recently faced rejection at a higher-timeframe resistance zone near $0.0000060.
• Following this rejection, the structure has started to shift, with attempts to push higher forming lower highs.
• If the current structure holds, Shiba Inu could target the next liquidity levels below its current price.
• The next areas of interest lie around $0.00000562 and $0.00000523, while a 4-hour close at $0.00000630 invalidates this move.
• Exchange netflow and reserve growth are also mounting fresh pressure on Shiba Inu’s price trajectory.

Shiba Inu Reacts to Order Block

The analysis shows that the asset recently reacted at a higher-timeframe resistance zone near $0.0000060, where price previously faced rejection. For perspective, the rally to the previous week’s high of $0.00000628 on March 25 aligned with the daily order block.

$SHIB faced rejection at this supply zone, and despite a retest of this area with an intraday high of $0.00000616 on March 30, the selling pressure proved insurmountable. Currently, the asset is retesting the order block at $0.0000060.

Following this rejection, the structure has started to shift. With attempts to push higher having failed, lower highs are forming, which typically signals weakening momentum. The analysis forecast a bearish continuation to lower prices.

Shiba Inu Downside Targets Come into Focus

If the current structure holds, Shiba Inu could face another rejection near the order block and then head downward. The targets are the next liquidity levels below its current price, which serve as natural price magnets in the short term.

The next area of interest lies around $0.00000562, marked as the “equal lows liquidity” level. The target is just 6% away from $SHIB’s current price of $0.00000602. According to the chart, the next stop is a 12% drop to the “draw on liquidity” area at $0.00000523, where large orders lie in wait to be filled.

However, this bearish outlook would change if Shiba Inu manages to close above $0.0000063 on the 4-hour timeframe. Such a move could absorb the selling pressure at the order block and weaken the current bearish structure, opening the door for a different trend.

Exchange Netflow Mounts Fresh Pressure

Meanwhile, exchange netflow and reserve growth are mounting fresh pressure on Shiba Inu’s price trajectory. These metrics have continued to increase daily as holders sell into strength.

The token rose 3.7% in the past 24 hours, yet the netflow into trading platforms has surged 2.5% in the same timeframe to 161 billion tokens. This selling bias, despite $SHIB’s show of strength, reflects the current sentiment among market holders, who appear more determined to sell their stash.

Shiba Inu’s exchange reserve has also increased to 81.51 trillion $SHIB, up from 81.32 trillion tokens on April 1.

The confluence of this mounting selling pressure and technical weakness does not look good for the token.