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Being wedged between a significant support level and a massive on-chain resistance cluster, Shiba Inu is in a precarious position that could be referred to as a 29 trillion SHIB trap. With technical and on-chain data indicating a struggle to break out in either direction, this price zone, which is currently around the $0.000012 mark, is both a battleground and a bottleneck for SHIB.
Technically speaking, SHIB is presently trading at about $0.0000122, just above a crucial horizontal support. Since it has been tested several times in recent months, this level serves as a short-term buffer against additional declines. In the event that selling pressure continues, it is also perilously close to turning into resistance. The declining volume suggests waning interest, while the RSI, which is at 44, suggests waning momentum and increasing bearish pressure.
The on-chain data, however, tells the true tale. Over 29 trillion SHIB distributed among holders at $0.000012 and $0.000013 are currently concentrated in a small price range, according to IntoTheBlock. With a significant portion remaining just out of the money and many in the money, just these holders are essentially stuck. Approximately 25,700 and 19,800 addresses were purchased, close to $0.000012 and $0.000013, respectively.
When combined, these wallets offer substantial potential sell pressure at even slight price increases, making upward movement more challenging. The opposite is also true: this concentration can serve as a buffer for support. Numerous holders may double down to safeguard their holdings if SHIB declines, increasing demand close to current levels.
Nevertheless, this trap may last for weeks unless the market as a whole regains its appetite for risk or SHIB presents a fresh bullish narrative. To put it briefly, Shiba Inu's own investors limit its price. The only way out of this trap is to make a clear break either above or below $0.0000115. In the interim, anticipate choppy movements and stagnation within this small band.
Vladislav Sopov