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Shiba Inu reaches a resistance level that might become an unbreakable wall for the asset in its current shape and form as it struggles with low momentum and substantial on-chain resistance. Over 20,000 addresses bought a massive amount of SHIB at the $0.000012 mark, or roughly 18.83 trillion tokens, according to recent on-chain data.
This level has now turned into a significant resistance area that SHIB is unlikely to overcome short of a significant increase in buying volume or a fundamental catalyst.
SHIB is presently trading close to short-term moving averages such as the 50 EMA and hovering slightly above the $0.000012 level, according to technical analysis. Despite the price's modest recent rally, the volume data is still weak, indicating that this move may be brittle. If there is no strong bullish sentiment to support a follow-through, any resistance, particularly at the levels where large volumes were acquired, could lead to profit-taking or stop-loss cascades, which would push the token lower.
Alex DovbnyaMore than 68% of addresses on the chain are currently losing money, which raises the possibility of selling pressure if the price moves closer to these holders' cost basis. There is a risk zone that serves as an imperceptible barrier for additional gains because of the high concentration of out-of-the-money addresses at and above $0.000012. Despite the weakness, SHIB is still going through a period of consolidation.
The formation of such a concentrated whale-level accumulation point at $0.000012 suggests that if the market turns risk-on, a breakout above this price may lead to a temporary supply squeeze, which would push SHIB higher. Nevertheless, this 18 trillion SHIB level might continue to restrain price action in the absence of rekindled investor interest and more robust inflows, highlighting the need for traders wishing to go long to exercise caution.
Vladislav Sopov
Dan Burgin