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Dog-themed cryptocurrency Shiba Inu (SHIB) might be on the verge of a major move, according to on-chain data.
According to IntoTheBlock's Global In/Out of Money indicator, 459.04 trillion SHIB were previously accumulated by 47,780 addresses in the price range between $0.000017 and $0.000019 at an average cost basis of $0.000018.
The large volume of tokens held here, as well as the number of addresses, indicates that a meaningful portion of the SHIB investor base is watching this range closely.
Being a large out-of-money cluster, most addresses are out of money, and the price may face strong selling pressure since many of these addresses might try to sell whenever the market price approaches their average cost and break-even point on their positions. This might serve as a resistance level against further price increases.
A successful breakout above this zone could trigger renewed bullish momentum and attract fresh buyers, while rejection may lead to a pullback.
SHIB price action
At press time, SHIB was up 2.99% in the last 24 hours to $0.00001607. After six days of rising, Shiba Inu retreated on May 11. The cryptocurrency saw sharp volatility on May 12, skyrocketing to highs of $0.00001764 before declining to $0.00001504 to close in the red.
Shiba Inu recovered from lows of $0.00001480 to highs of $0.00001662 in yesterday's session. The surge was met with resistance at today's $0.0000167 high, leaving traders wondering where the SHIB price might go next.
Potential scenarios
Shiba Inu may extend its current consolidation a little longer before attempting another retest of the $0.000017 to $0.000019 range, where 459 trillion SHIB are held.
If Shiba Inu successfully breaches this zone, buyers might push the price to higher targets; in this scenario, the next barrier range lies at $0.000019 to $0.000024, where 177.63 trillion SHIB were previously bought by 141,410 addresses.
On the other hand, support lies below Shiba Inu's current level, between $0.000014 and $0.000016, where 30.36 trillion SHIB were previously bought by 50,940 addresses.
Vladislav Sopov
Dan Burgin