Recently, SHIB has managed to break through a formidable resistance level where more than 6 trillion SHIB were accumulated. According to IntoTheBlock's global in/out of the money indicator, this price level, at $0.000011, represented a significant threshold where a considerable number of SHIB holders had previously purchased their tokens.
The ability of SHIB to push past this resistance was a bullish signal, indicating a strong buying pressure that overcame the selling tendency at this level. Historically, such large accumulations act as resistance because investors often look to sell their holdings when the price returns to their purchase level, aiming to break even or capture profits. However, SHIB's momentum was such that it cut through this selling pressure, signaling strong market confidence.
This breakthrough was crucial because on-chain data suggested that SHIB was likely to encounter significant selling pressure around this price point.
However, the victory was short-lived, as the price of SHIB has since retracted below the $0.000011 level. This pullback indicates that the battle between bulls and bears is not over, and SHIB may need to gather additional strength for another attempt to solidly break above this resistance. For SHIB to establish a new support level above this price point, it will require sustained buying pressure and positive market sentiment.
The next steps for SHIB are critical. If the cryptocurrency can maintain its momentum and permanently move past this resistance level, it may open the door to further gains. For now, SHIB can muster another charge to break through the resistance definitively. A second successful breach could confirm the bullish trend and potentially lead to new heights for the meme coin.