- Shiba Inu price traded below a critical Volume Profile level.
- Bearish sentiment remains robust, and little support exists within the Ichimoku system.
- Downside pressure could be sustained with marginal relief in sight.
Shiba Inu price, like the rest of the cryptocurrency market, has struggled since the flash-crash on early Saturday. While traders were able to rally SHIBA 25% above the Saturday lows, selling pressure resumed on Sunday.
Shiba Inu inside a highly volatile and weak price range
Shiba Inu price close its Sunday candlestick below a critical support level that indicates a fast sell-off is likely. The large, red, rectangular area represents a range between $0.000030 and $0.000036. The Volume Profile between those two levels is extremely thin and warns that any move below $0.000036 could trigger a quick and easy move lower.
Evidence of the speed of the drop was observed somewhat during Saturday’s sell-off, but that was mostly an episode of NOS (Non-Organic Selling). NOS is a technical term to describe any price action that is done mainly due to resting buy and sell orders or, as is often the case in the cryptocurrency market, forced liquidations from leveraged positions in derivatives markets. The flash-crash on Saturday is a perfect example of what NOS looks like and what the expected recovery should look like.
SHIBA/USDT Daily Ichimoku Chart
Traders will likely see a lower test due to Shiba Inu price closing inside that price zone. The closest Ichimoku support is at $0.000025 when the Chikou Span hit the top of the Cloud (Senkou Span A).
To invalidate or at least give pause to the current bearish setup, Shiba Inu price would need to close above the daily Kijun-Sen at or above $0.000042.