33 Trillion Shiba Inu (SHIB) Support Losing Steam: What’s Happening?

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As a seasoned analyst with over two decades of experience in the cryptocurrency market, I’ve seen my fair share of bull and bear markets, triangles, and breakouts. The Shiba Inu chart currently presents an intriguing case. While the technical structure suggests a potential breakout, the on-chain data raises some concerns.

The daily price movement of Shiba Inu seems to be trapped within a triangle shape, hinting at an imminent breakout. However, on-chain statistics show some concerning trends. It appears that the asset is losing its grip on its significant support levels around $0.000022-$0.000023, which are supported by approximately 33 trillion SHIB held by about 45.78% of profitable wallets.

If the support level for SHIB is breached, it could lead to a significant drop in its price. The data on In/Out of the Money indicates that there’s a high level of buying interest within this range, making it hard for the current price to fall lower. However, there seems to be a build-up of selling pressure just above $0.000025, as addresses with out-of-the-money positions are prevalent in that area.

The clustering of these red zones implies that SHIB may struggle to increase unless there’s a surge in demand for purchases. The potential drop could reach the significant support zones at approximately 0.000018 and 0.000019, due to decreasing trust in the current support level. If the price surpasses 0.000022, these levels, which correspond to past purchasing points, might serve as a protective barrier.

The price of SHIB tends to peak within a contracting triangle shape on its technical chart, often indicating an imminent significant surge or dip. This pattern typically precedes a major breakout or breakdown. The direction SHIB will likely take is influenced by any sudden increase in volume and market sentiment over the coming days due to the volatile nature of the market. If SHIB’s price were to fall, potential support levels could be the 200-day moving average, currently around $0.000018, or the trendline from its recent rally.

The $0.000028 resistance could be the target of a breakout above $0.000025, which would rekindle bullish momentum. A breakout from the triangle pattern might push the asset toward higher resistance levels if SHIB’s support at $0.000022 holds firm. A retracement could occur, though, if the buying momentum wanes or if there is general market weakness. For possible clues, investors should keep an eye on the $0.000022 support and the $0.000025 resistance.

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2024-11-22 15:37