As Bitcoin shoots back to nearly $80,000 mark, meme coins witness a minor recovery. Over the past 24 hours, the meme coin market capitalization has reached $42.19 billion, with Dogecoin and Shiba Inu paving the way.
Amid the recovery run, the second biggest meme coin in the market, Shiba Inu, has increased by nearly 2.75%, struggling to surpass the $0.00001150 resistance level. Will this lead to a post-retest correction?
Shiba Inu To Revisit $0.000010
In the daily chart, Shiba Inu price trend showcases a breakdown of the $0.00001150 crucial support. As predicted in our previous analysis, the breakdown nearly tested the 1.272 Fibonacci level at $0.00001000.
Following the correction, a post-retest turnaround with a V-shaped recovery was witnessed in Shiba Inu. However, due to the overhead supply pressure, Shiba Inu trades at a market price of $0.00001210, with a 3% drop over the past 8 hours.
With two consecutive bearish candles in the 4-hour price chart. Shiba Inu warns about post-retest correction. Due to the prevailing downfall, Shiba Inu is close to witnessing a negative crossover in the 100 and 200 SMA lines.
However, the short-term recovery has merged the MACD and signal lines. Thus, it reflects a weakness in the bearish momentum.
Large Holder’s Netflow Warns Increased Supply
Amid the recent correction, the large holder’s netflow in Shiba Inu, based on IntoTheBlock, has flipped to negative. This marks an increased outflow of Shiba Inu from the largeholder bank.
On April 7, the daily netflow stood at negative 256.99 billion SHIB tokens. As the large holder’s netflow turns negative, the increased supply is likely to fuel steeper corrections in the meme coin.
Bearish Targets For Shiba Inu
Based on the Fibonacci level, the post-retest correction in Shiba Inu is likely to re-challenge the 1.272 Fibonacci support level at the $0.000010 psychological mark. A steeper correction below this level will put the 1.618 Fibonacci level at $0.00000912 on the bearish radars.
This highlights a downside risk of nearly 20%. On the bullish front, a recovery run above the $0.00001150 mark will likely re-hit the 78.60% level at $0.000012321.
