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Shiba Inu (SHIB) price action has gained attention in recent days as it battled a much-watched key resistance.
However, the latest developments indicate a stall in the SHIB rally, prompting a closer examination of market trends, on-chain data and technical indicators.
The crux of the SHIB price action is a key price range between $0.000024 and $0.000026, where 58.91 trillion SHIB were bought by 63,840 addresses at an average price of $0.000025, according to IntoTheBlock data.
As SHIB approached the 58 trillion token threshold, the momentum that had propelled its price began to wane. This level has become a critical point of resistance, where bullish sentiment started to falter.
Tomiwabold OlajideShiba Inu steadily declined for three days after reaching highs of $0.00002684 on May 22. Price rebounded before selling resumed with SHIB battling to stay above the daily SMA 50 at $0.0000245 in today's trading session.
At the time of writing, SHIB was relinquishing its prior day gains, down 0.08% in the last 24 hours to $0.00002482.
Although the exact reason for the SHIB price slowdown remains unknown, market dynamics and other factors might have come into play.
The slowing at this point might suggest that the market is taking a moment to consolidate gains and consider the next move. Traders may be taking profits, while others could be waiting for a clearer signal to take action. Additionally, the overall sentiment in the crypto market plays a crucial role, as broader market trends often influence the performance of individual tokens.
For SHIB to regain its upward momentum, it might likely need to overcome the 58 trillion SHIB threshold with renewed buying interest. The broader market movements may also need to be monitored to determine the SHIB price's next move.
If the market regains momentum, a break past the $0.00002684 level might be needed to ascertain the start of a SHIB upside move. If this happens, SHIB might target the $0.00003285 level. In this scenario, SHIB might need to sustain above the daily SMA 50 at $0.0000245 to prevent further declines.
If SHIB drops below the daily SMA 50 level, support is envisaged at $0.00002334 and $0.00002155.
Alex Dovbnya
Dan Burgin