Shiba Inu has the potential to exceed the price threshold of $0.000056 if it can overcome four barriers in the form of supply walls, which hold a total of over 78 trillion SHIB tokens.
With the crypto market aiming to fully recover from last month’s losses, Bitcoin (BTC) and other cryptocurrencies have set the stage for significant price rallies. Shiba Inu, which suffered a 27.16% decline in value in April, has seen a 7.15% increase this month, indicating a push towards substantial price levels.
SHIB’s ultimate objective is to surpass its yearly peak of $0.000045 and then target the $0.00005 price range. However, on-chain data from IntoTheBlock suggests that it may encounter several obstacles on its journey to $0.00005.
IntoTheBlock’s Global In/Out Money (GIOM) metric reveals that Shiba Inu faces minimal resistance below the $0.000026 mark. Market data indicates that SHIB’s next significant resistance level aligns with the Fibonacci 0.5 retracement level at $0.00002721.
Once it surpasses the $0.000026 level, SHIB will confront three sell walls before reclaiming $0.000045, and an additional sell wall before reaching a new yearly high above $0.00005. The first sell wall is located between the $0.000026 and $0.00003 price range, with 115,790 addresses collectively holding 56.37 trillion SHIB.
Shiba Inu has been facing resistance in the $0.00003 region since last month. The second sell wall is situated around an average price of $0.000033, with approximately 140,830 wallets accumulating 21.06 trillion SHIB within the price range of $0.000030 and $0.000036.
The second sell wall includes a cluster of 57,960 addresses that amassed 8.44 trillion SHIB at a maximum price of $0.000045. Breaking through this level would propel Shiba Inu to its yearly peak of $0.00004567, previously achieved on March 5 during the uptrend that began in late February.
However, to surpass the $0.000045 high and establish a new record, SHIB must overcome the sell wall between $0.000045 and $0.000056, where 62,510 addresses hold 3.32 trillion SHIB. Collectively, these four supply walls, containing a total of 78 trillion SHIB tokens, present significant resistance on the path to $0.000056.
Considering the current price of $0.00002428, Shiba Inu would need to surge by 130% to reach $0.000056. This potential was demonstrated during the late February uptrend when SHIB experienced a 372% increase within eight days. Replicating this rise is feasible, but it would require a shift in market sentiment and strong bullish support.
Presently, Shiba Inu’s sentiments are leaning towards bearish territory, with the Long/Short Ratio on derivatives positions currently at 0.845. However, investors have started withdrawing their SHIB tokens from exchanges, moving a total of $5.54 million since yesterday, indicating a belief in price recovery.
Disclaimer: This article provides information and should not be considered financial advice. The opinions expressed in this article may be the author’s own and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.