Shiba Inu's Weak Demand Sparks Accumulation Fears

Shiba Inu demand has been weak in recent weeks, raising concerns about potential further losses. The withdrawal of 151.61 billion SHIB tokens from Coinbase, worth $2.41 million, has been an interesting development. Sustained outflows of the memecoin could indicate accumulation across the market.

The daily price action for Shiba Inu has remained bearish, but there has been a market structure shift on the 4-hour chart. The question remains: is there enough demand to sustain this lower timeframe shift, or should traders brace for more losses?

The $0.00002 bullish breaker block had already been flipped to resistance before the early February sell-off. The next support level was at $0.00001288, but the consolidation around $0.000016 in October 2024 highlighted it as another demand zone. The On-Balance Volume (OBV) was below the lows from October, even though the price was at the lows, indicating intense selling pressure over the past two months. The OBV was unable to scale the October lows, which could delay bullish efforts at a recovery. The Relative Strength Index (RSI) was also below 50, highlighting bearish dominance.

On the H4 chart, a bullish market structure break was seen. Alongside this, the price has made higher lows over the past week. The OBV, which was at the October lows on the daily chart, has slowly trended higher. Sustained buying pressure could push prices higher, but it is unclear if that will arrive over the coming days.

The liquidation heatmap from the bounce from the local lows earlier this month showed that the $0.0000154-$0.0000157 region was a short-term target. The $0.0000174 was a magnetic zone to the north, another short-term price target. This level was just above the local highs seen on the 4-hour chart. Hence, traders already in a long position could book profits at this level, as the market-wide sentiment was not bullish in the short term.