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100 Trillion SHIB Spilled on Bulls: Will Shiba Inu Rally Continue?

Mon, 08/14/2023 - 10:58
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Arman Shirinyan
Shiba Inu bulls will have to work little bit more for price to move forward
100 Trillion SHIB Spilled on Bulls: Will Shiba Inu Rally Continue?
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According to the latest insights from the IntoTheBlock Indicator, a staggering 100 trillion SHIB are circulating around the present price range. Such a colossal volume, transacting at this narrow price bracket, suggests the possibility of a significant resistance level forming for Shiba Inu.

The intricacies of the IntoTheBlock Indicator can offer a glimpse into the mindset of coin holders. Here's a simplified version: For every address that has a token balance, the indicator computes the average price at which these tokens were acquired. By comparing this average cost to the current price, it then determines if the address is "In the Money" (Current Price > Average Cost) or "Out of the Money" (Current Price < Average Cost).

Shiba Inu chart
Source: IntoTheBlock

This insight is immensely valuable. When a significant number of addresses are "In the Money," it signifies that many holders have purchased at a lower price than the current level. As a result, they might be motivated to sell and take profits, forming a resistance. Conversely, when many addresses are "Out of the Money," it denotes potential buy zones or support levels as holders may be reluctant to sell at a loss.

In the case of Shiba Inu, the vast volume of 100 trillion SHIB trading around the current price implies that a considerable chunk of holders are either contemplating taking profits or holding out, expecting the price to surge further.

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Furthermore, with price projections for Shiba Inu hinting at the $0.000001160 resistance level, the meme coin could face turbulence. Resistance levels, often established where a lot of sell orders are placed, act as ceilings, capping the potential upward movement of an asset's price. For Shiba Inu, reaching and breaking past this $0.000001160 mark will be pivotal in determining its medium-term trajectory.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.