The current price action shows that Shiba Inu (SHIB) is currently in a Triangular formation Whose hack might send him on Great rise to the top. However, as the cryptocurrency continues to trade within this triangle pattern, on-chain data shows a strong resistance wall, which could pose a strong threat to SHIB's price increase in the short term.
According to data from IntoTheBlock, this interesting resistance wall is located around the $0.000027 average price level, which consists of 149,120 addresses containing 109 trillion SHIB tokens.
The biggest obstacle for the Shiba Inu
After rising to $0.0000287 in late May, the Shiba Inu reversed to $0.0000237 in early June and remained stuck in a narrow trading range between $0.000023 and $0.000026. Interestingly, ITB data This price level is linked to a resistance worth monitoring. What this means is that there is a huge sell wall for SHIB just above $0.000026 that the bulls have not been able to break through.
The sell wall shows massive resistance because there are many addresses that can sell their holdings and prevent further price rise. Although this sell wall consists of holders holding between the maximum and minimum price of $0.000025 and $0.000030, respectively, the most important price is just below the average price of $0.000027.
In order for the Shiba Inu to get past this selling wall, it needs a significant amount of buying pressure and momentum Both whales and individual investors. Fortunately, the symbol has seen an uptick in whale activity in the past few days, with one particular whale Devouring More than 715 billion chips in just hours.
SHIB Bulls to keep pushing
Shiba Inu It has not yet returned to the $0.000030 threshold in the past two months. Despite various accumulations from the bulls, many traders continue to sell since it hit a two-year high in March 2024. However, if the Shiba Inu can overcome this massive selling wall, its price could rise parabolically very quickly. Despite the looming sell wall, there is significant support at $0.000023, preventing a significant decline for SHIB.
At the time of writing, SHIB is trading at $0.00002392 and is down 5.35% in the last 24 hours. As mentioned earlier, the recent price action resembles the movement of the triple formation on the price chart. Currently, SHIB is testing the lower limit of the formation and could continue falling until it reaches the support at $0.000023. A bullish reversal is likely to occur at this point, and the meme coin could start a move to the upper end of the triangle at $0.000028.
For this to happen, the bulls would need to clear the sell wall at $0.000027 at the same time, which would give SHIB the freedom to reach another key price level at $0.000032.
Featured image from Reddit, chart from TradingView
