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Shiba Inu's 178 Trillion Support Taking Hit, What's Happening?

Wed, 04/19/2023 - 10:06
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Arman Shirinyan
Shiba Inu has a lot of support beneath its current price level, but it might be nullified fairly quickly
Shiba Inu's 178 Trillion Support Taking Hit, What's Happening?
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As the cryptocurrency market experiences a resurgence in meme tokens, Shiba Inu (SHIB) is currently testing a critical support level of 178 trillion tokens, according to IntoTheBlock's In/Out of the Money (IOM) indicator. This significant support level is based on the distribution of nearly 200 trillion SHIB tokens at a price close to the current market value.

The In/Out of the Money indicator from IntoTheBlock provides insights into the distribution of tokens among holders by comparing the current price with the average cost of tokens held in each address. If the current price is higher than the average cost, the address is considered "in the money." Conversely, if the current price is lower than the average cost, the address is "out of the money."

Shiba Inu chart

Despite the ongoing rally on the meme token market, Shiba Inu's price performance has been rather lackluster, with a minimal increase in volatility. This could be attributed to the fact that SHIB has evolved from being a mere meme token to encompassing a more comprehensive ecosystem, complete with decentralized finance (DeFi) features. As a result, the asset may no longer benefit as much from the rally on other meme tokens as it would from growth in the broader DeFi space.

The support level of 178 trillion SHIB tokens is an important milestone for the cryptocurrency, as it indicates a strong base of holders who have acquired the asset at or around its current price. If this support level holds, it could signal that investor confidence in Shiba Inu remains steadfast, despite the relatively modest price performance compared to other meme tokens.

Should the support level fail to hold, a potential downturn in the market may ensue, which could put pressure on SHIB holders to sell, resulting in a further drop in price. As such, it is crucial for investors to closely monitor the 178 trillion support level and assess overall market sentiment for Shiba Inu.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.