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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).
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.
Alex DovbnyaFurthermore, 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.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov