Shiba Inu (SHIB) is displaying notable price movement, currently challenging a downward-sloping trendline that has constrained its price since early March. Shiba Inu metrics turn bullish as recent price action indicates a potential breakout from a downward trendline.
SHIB has gained 10% over the past week and is positioned at a critical juncture where a successful breakout could trigger a strong bullish trend. Conversely, failure to break out may result in a bearish reversal.
As of this writing, SHIB is trading at $0.00002494, with recent 24-hour trading action suggesting bullish momentum pushing towards the $0.000025 mark. Investor sentiment remains optimistic despite multiple resistance levels ahead.
According to IntoTheBlock (ITB), about 62,700 addresses acquired 69.97 trillion SHIB around the $0.000025 price level. SHIB’s upward journey is impeded by five significant resistance levels. These levels represent a range of addresses likely to sell upon reaching their break-even points.
First Major Resistance at $0.000028
The first significant hurdle lies at an average price of $0.000028, with 98,230 addresses holding approximately 40.17 trillion SHIB. To move higher, SHIB must surpass this price, where many addresses purchased at up to $0.00003.
Following this, SHIB faces resistance at around $0.000033, where 143,280 addresses hold 21.3 trillion tokens. An additional barrier exists at an average price of $0.000040, a psychological level as SHIB has not broken above this point this year. Here, 57,180 addresses are holding tokens with a price range between $0.000036 and $0.000044.
If SHIB reaches $0.000040, it might consolidate as traders take profits, though it could also spark further accumulation, bolstering bullish sentiment. Further resistance levels are at $0.000050 and $0.000060, involving 62,340 and 92,530 addresses holding 33 trillion and 29.73 trillion SHIB respectively.
Resistance and Support Levels
Traders monitor closely as Shiba Inu metrics turn bullish, signaling a potential opportunity for profitable trades. SHIB is currently trading at $0.00002494 and is approaching a key resistance level of $0.000025. However, data from IntoTheBlock reveals multiple resistance “walls” that SHIB needs to overcome to maintain its upward momentum. These resistance levels are essentially clusters of addresses that bought SHIB at specific price points. When the price reaches these points again, many of these addresses may sell to break even, creating resistance.
The first significant resistance is at $0.000028, with about 98,230 addresses holding 40.17 trillion SHIB bought at prices up to $0.00003. This means that even if SHIB breaks through the $0.000025 level, it will immediately face selling pressure as it approaches $0.000028.
Further resistance levels at $0.000033 and $0.000040 pose additional challenges. At $0.000033, 143,280 addresses hold 21.3 trillion SHIB, while at $0.000040, another psychological barrier, 57,180 addresses hold SHIB purchased between $0.000036 and $0.000044. These resistance levels are crucial because they represent significant potential sell-offs that could halt SHIB’s upward progress.
Investor Sentiment and Market Dynamics
Shiba Inu metrics turn bullish, prompting increased buying pressure from retail investors eager to capitalize on the anticipated price surge. The recent bullish sentiment among SHIB investors is evident, as many are looking to push the price above the current resistance levels. The fact that SHIB has seen a 10% increase in the past week suggests strong interest and confidence from the community. This optimism is a positive sign, indicating that many believe in SHIB’s potential for growth despite the existing hurdles.
However, the presence of multiple resistance levels also implies that many investors might opt to take profits as SHIB reaches these points. This behavior could lead to short-term price volatility and make it challenging for SHIB to sustain a steady upward trend. As resistance levels are reached, traders may decide to cash out, putting downward pressure on prices.
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