Shiba Inu has survived an intense price drawdown over the past week. However, more than 700 trillion SHIB are likely to flip into profit if a key resistance level is cleared in the mid-term
Shiba Inu (SHIB), the dog-themed memecoin, has remained under bearish pressure for over 30 days as the price keeps plunging to new lows. This negative growth has left approximately 77% of SHIB holders in the red zone.
Shiba Inu Holders Await Breakout
Notably, the lack of profit from trading has kept investors away from the memecoin due to dampened market sentiment. Market participants appear unwilling to commit more funds to the asset, given the severe losses they are experiencing.
However, on-chain data has spotted a key resistance zone that signals a level SHIB needs to hit before a reversal can occur.
Analysis of IntoTheBlock data shows that addresses that purchased about 757 trillion SHIB made the buy when the price was above $0.000016. These investors are currently “Out of the Money.” Of this amount, 637 trillion SHIB tokens, or 84% of the underwater, bought the coin between $0.000016 and $0.000024.
Based on this, the only way most SHIB holders can erase their losses is for SHIB to clear the $0.000022 resistance level. Analysts maintain that if SHIB breaches it, the memecoin might resume an uptrend.
Interestingly, SHIB price action has not moved in that direction within the last 30 days despite the community action to stir market activity.
Bullish Signals vs. Bearish Indicators
Meanwhile, a positive signal for SHIB is that the coin shows signs of recovery from a critical accumulation zone. That is, between $0.000012 and $0.000014. Despite recently dropping to a weekly low, VipRiseTR says SHIB’s ability to breach this zone holds hope for its price outlook.
As of this writing, SHIB exchanges at $0.0000154, representing a 1.34% rally in the last 24 hours. Despite this price drop, investors have resumed buying frenzy as trading volume surged by 53.56% to $259 million.
If the current market activity prevails and SHIB stays above the accumulation zone, analysts believe that the memecoin could target the next resistance zone of $0.00002338.
Meanwhile, Javon Marks, another analyst, observed that SHIB had cleared a “falling wedge pattern,” which signals a likely bullish reversal. According to Marks, if SHIB sustains the rebound, it could soar by as much as 422% and push it to an all-time high of $0.00008841.
Despite these positive predictions, SHIB’s Moving Average Convergence Divergence (MACD) line remains below the signal line. This is a bearish indicator and proof that SHIB remains in troubled waters.
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