Shiba Inu (SHIB) is experiencing downward price pressure due to a general slump in the cryptocurrency market. This bearish trend has resulted in nearly 77% of SHIB investors currently holding losses, negatively impacting market sentiment.

Currently, SHIB is trading at $0.0000153, its lowest point in a week, after a 3.55% decrease in the last 24 hours. However, on-chain analysis points to a critical resistance level; breaking through this level might trigger a bullish turnaround.

Crucial Resistance Zone: 700T SHIB Holdings Underwater and Why It’s Significant

Data from IntoTheBlock indicates that 757 trillion SHIB tokens were purchased at prices exceeding $0.000016 and are currently “out of the money” (held at a loss). Within this unprofitable amount, a substantial 637 trillion SHIB, equivalent to 84% of the total underwater holdings, were bought between $0.000016 and $0.000024.

If the price of SHIB rises to around $0.000018 or surpasses the $0.000022 mark, a significant portion of these currently underwater SHIB tokens would become profitable again. Therefore, the range between $0.000018 and $0.000022 represents a key resistance zone that Shiba Inu needs to overcome to potentially initiate an upward price trend.

However, this potential uptrend depends on whether these investors choose to hold onto their tokens rather than selling to realize profits at their breakeven points.

700T SHIB is Underwater According to GIOM Indicator

Is Shiba Inu Price Poised for a Breakout?

Despite the recent dip to weekly lows, analysts maintain a positive outlook on SHIB’s current price. Analyst VipRoseTr suggests that SHIB is showing bullish signals after rebounding from a significant accumulation zone between $0.000012 and $0.000014.

According to the analyst, if SHIB sustains trading above this support level, it could aim for the next resistance around $0.00002338. A continued upward momentum could then potentially propel the price to a multi-month peak of $0.0000365.

VipRoseTr: X

Another analyst, Javon Marks, also pointed out that SHIB has broken out of a falling wedge pattern. This pattern typically signals a potential bullish reversal, and Marks predicts that this could lead to a 422% surge for the meme coin, reaching its record high of $0.00008841.

Despite these optimistic Shiba Inu price predictions, the daily price chart currently indicates that sellers are still dominating the market.

Selling Pressure Still Impacts SHIB

Shiba Inu’s daily chart reflects ongoing bearish momentum, as indicated by the Relative Strength Index (RSI) falling to 36. A further decline in the RSI into oversold territory could signal a potential price reversal as selling interest diminishes. However, if the price breaks below the support level at $0.0000145, the current downtrend could extend further.

Furthermore, the Moving Average Convergence Divergence (MACD) line is positioned below the signal line, reinforcing the current bearish trend in the market.

SHIB/USDT 1-day Chart

Selling pressure on Shiba Inu may persist until it successfully breaks above the $0.000018 resistance area. Achieving this breakout point could turn a significant number of holders profitable, potentially leading to a shift in overall market sentiment.

Frequently Asked Questions (FAQs)

The critical price range for Shiba Inu is between $0.000016 and $0.000024. Within this range, 84% of current SHIB holders in loss positions made their purchases.

A large number of investors holding losses can create negative market sentiment and reduce overall confidence in SHIB.

Shiba Inu’s Relative Strength Index (RSI) is currently at 36, nearing oversold conditions. If the RSI drops below 30, it might indicate a possible trend reversal as selling momentum weakens.

Source: coingape.com