• SHIB’s recovery rate has exceeded 20% as bulls aim for further gains.
• However, there were hurdles to the recovery that could only be avoided if BTC extends the recovery.

Shiba Inu [SHIB] It has risen more than 20% since May Day, reversing some of its April losses. However, at the time of writing this article, Memecoin had not yet made a bullish turn in the market structure on the higher time frame charts.

We faced a double obstacle near the 50% Fibonacci retracement level. Can the bulls overcome the hurdle and reverse the remaining first quarter losses?

Can bulls avoid sellers eyeing the 50% Fib level?

Source: SHIB/USDT on TradingView

On the daily chart, the Fibonacci retracement tool was plotted between the January low and the first quarter high. Based on the tool, the $0.00000270 price level was significant.

It was also a placeholder for the 50% Fib and a daily bearish order block (OB). Therefore, it could act as a big selling wall.

Trendline resistance was also below a potential sell wall (marked in red). However, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) measurements were neutral.

These imply weak buying pressure and low capital inflows, which could complicate SHIB’s recovery at $0.0000270.

However, the sell wall was also the neckline of a double bottom pattern, a classic bullish reversal formation.

To gain the upper hand, bulls must overcome a double obstacle. Furthermore, the market structure needs to turn bullish by taking a bold step back above $0.0000270.

If the bulls have the upper hand, $0.000031 will be the immediate target.

However, if the price is rejected significantly due to the double failure, sellers may push SHIB down to $0.0000225 again.

Are market players negative about SHIB’s price?

Source: Santiment

The recent recovery has been accompanied by positive sentiment towards meme coins.

However, as Santiment data shows, sentiment has fallen into negative territory, highlighting the potential for a bearish view on SHIB price.

In addition, selling pressure increased slightly, as indicated by the slowing decline in the exchange’s supply indicator (orange).

This indicator tracks SHIB inflows to exchanges, and a positive value indicates a surge in inflows and potential selling pressure.

read a book about shiba inu [SHIB] Price prediction for 2023-24

Conversely, a decline in exchange supply indicates an outflow from the exchange and signals potential buying pressure.

but, Bitcoin’s [BTC] An extended recovery above $65,000 could allow the SHIB bulls to break through the neckline resistance. Therefore, tracking BTC price trends could be important in determining SHIB’s next move.