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Shiba Inu has recently displayed indications of establishing a critical support level at the $0.000012 mark supported by on-chain data that shows that over 26,000 wallet addresses hold a staggering 21 trillion SHIB volume at this price point. Depending on the direction of market sentiment going forward, this critical support may serve as the foundation for future price movement.
From a technical standpoint, SHIB is still under a lot of pressure. The 26 and 50 EMA, which serve as dynamic resistance, are its descending moving averages, and it is still having trouble breaking through them. SHIB is currently making an effort to consolidate just above $0.000012, a range that has historically served as both support and resistance in prior cycles.
There appears to be no discernible bullish or bearish momentum as the Relative Strength Index (RSI) lingers around the neutral 50 mark. An intricate tale is revealed by the on-chain data. As per the In/Out of the Money analysis by IntoTheBlock, approximately 45% of SHIB holders are currently making money, while 54% are still in the red. One could refer to the 21 trillion SHIB tokens that are grouped at the $0.000012 price level as a buy wall.
This significant accumulation zone may keep the price from dropping much lower unless outside forces like a market-wide decline take over. But it also suggests that there is a resistance ceiling slightly above that range. A steep sell-off may occur as bag holders try to break even if SHIB is unable to generate enough volume or investor interest to break above $0.000013-$0.000014.
The volume bars on the chart also show a general lack of trading activity, which makes it harder to support a bullish breakout in the near future. In conclusion, even though bulls have something to rely on with the formation of a 21 trillion SHIB support level, the lack of momentum and persistent overhead resistance imply that any upside may be constrained unless there is a significant improvement in the general sentiment toward cryptocurrencies.
Vladislav Sopov