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Shiba Inu (SHIB) is approaching a critical resistance level marked by a massive 518.2 trillion token supply wall, signaling a pivotal moment for its price trajectory.
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After a three-day rally, SHIB’s recent price action shows consolidation as buyers and sellers contend near the $0.000013 mark, with on-chain data revealing significant investor positions around this range.
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According to COINOTAG, “The substantial supply wall at $0.000014 to $0.000019 reflects a key battleground where many holders may decide to realize profits, potentially increasing short-term volatility.”
Shiba Inu faces a crucial 518.2 trillion SHIB supply wall near $0.000014, with on-chain data highlighting key resistance and support levels shaping its next move.
Shiba Inu’s 518.2 Trillion SHIB Supply Wall: A Critical Resistance Level
Shiba Inu’s recent price momentum has brought it face-to-face with a significant resistance barrier formed by a large supply wall of 518.2 trillion SHIB tokens. This supply wall, identified through detailed on-chain analysis by IntoTheBlock, represents the volume of tokens previously acquired between $0.000014 and $0.000019 by over 166,000 addresses. Such a concentration of holdings at this price range typically acts as a formidable obstacle, as holders may look to sell to break even or secure profits, thereby increasing selling pressure.
Currently trading around $0.00001324, SHIB’s price is consolidating below this resistance, reflecting a tug-of-war between bullish buyers aiming to push through and sellers defending their positions. The presence of this supply wall suggests that any upward movement beyond $0.00001387 will require substantial buying volume to absorb the sell orders and sustain a breakout.
On-Chain Support Levels and Market Sentiment
On the downside, SHIB benefits from a robust support zone between $0.000008 and $0.000013, where approximately 108.16 trillion tokens were previously accumulated. This support range provides a cushion against sharp declines and indicates a base of investor confidence. The recent 16% price increase this month, the strongest since November, underscores renewed risk appetite within the crypto market, which could fuel further gains if sustained.
Market analysts are closely watching for a potential double bottom pattern, a technical indicator that often signals a bullish reversal. Should SHIB surpass the May resistance level of $0.00001764, it could confirm this pattern and open the door for a more extended rally. However, failure to breach the current supply wall might lead to increased volatility and a possible retracement toward the support zone.
Implications for Traders and Investors
For traders, the immediate focus lies in monitoring SHIB’s ability to break above the 518.2 trillion token supply wall. A decisive breakout could trigger momentum-driven buying, attracting short-term traders and potentially pushing the price toward the $0.000014 to $0.000019 range. Conversely, a rejection at this level may prompt profit-taking, leading to increased selling pressure and a pullback to lower support levels.
Investors should consider the broader market context, including overall cryptocurrency risk sentiment and macroeconomic factors, which can influence SHIB’s price dynamics. Staying informed through reliable on-chain data and technical analysis will be crucial for making strategic decisions in this volatile environment.
Conclusion
Shiba Inu’s encounter with the 518.2 trillion SHIB supply wall marks a defining moment in its short-term price action. The outcome of this battle between buyers and sellers will likely dictate whether SHIB can sustain its recent gains or face a correction. While the potential for a bullish breakout exists, investors and traders must remain vigilant, leveraging on-chain insights and technical signals to navigate the evolving landscape. Ultimately, SHIB’s next move will hinge on the balance of buying pressure against this significant resistance, shaping its trajectory in the coming weeks.
