- Shiba Inu (SHIB) is currently navigating a triangular formation that suggests a potential upward breakout.
- However, a significant resistance wall identified by on-chain data could impede short-term price gains for SHIB.
- The resistance wall, comprising numerous addresses holding substantial SHIB tokens, is positioned around the $0.000027 level.
Analyze Shiba Inu’s price movement and uncover the factors affecting its potential breakout in this insightful article.
Major Hurdle For Shiba Inu
Shiba Inu’s price dynamics reveal a crucial resistance level that must be conquered for any substantial upward movement. After reaching $0.0000287 in late May, SHIB retraced to $0.0000237 by early June and has since been confined to a narrow trading range. According to data from IntoTheBlock, this range correlation with a significant sell wall suggests a notable resistance at just below $0.000027.
This sell wall represents a substantial challenge, as holders at this level might offload their tokens, hindering further price gains. While this resistance spans between $0.000025 and $0.000030, the critical point of focus is the average resistance around $0.000027. To breach this barrier, Shiba Inu will require immense buying momentum, predominantly from both large-scale and retail investors. Encouragingly, recent days have seen increased activity from prominent investors, including a substantial acquisition of over 715 billion SHIB by one notable whale.
SHIB Bulls To Keep Pushing
Despite persistent accumulation efforts, Shiba Inu has yet to reclaim the $0.000030 mark within the last two months. Many traders have opted to sell their holdings since the peak in March 2024. However, overcoming the formidable sell wall could set the stage for a substantial price surge. Significant support at the $0.000023 level offers a buffer against severe declines.
Currently trading at $0.00002392, SHIB has seen a 5.35% decrease over the past 24 hours. The price pattern suggests a triangular formation, testing the lower boundary. If SHIB finds support around $0.000023, a bullish reversal could propel the token towards the upper triangle endpoint at $0.000028.
For this bullish scenario to materialize, the selling resistance at $0.000027 must be cleared, potentially paving the way for SHIB to target higher price levels, such as $0.000032.
Conclusion
In summary, Shiba Inu’s price faces significant resistance around the $0.000027 level, which could impede immediate gains. However, if bulls muster enough momentum to push through this resistance, SHIB could experience a rapid price increase. As it stands, support at $0.000023 provides a safety net, hinting at potential bullish reversals. Investors should closely monitor these key levels to gauge SHIB’s next moves.
