As Bitcoin dominantly overtakes the $35,000 level, the memecoin sector is experiencing a surge in heat. Recent trading sessions have seen leading memecoins such as Dogecoin, PEPE, and Shiba Inu enjoy robust gains, signaling a renewed rush of investor interest. Despite this uptrend, Shiba Inu’s surge faces a possible roadblock. On-chain data suggests that SHIB may encounter sell-offs if it crosses the $0.000009 mark, sparking a bearish possibility over its ongoing rally.
These Holders Might End Their Patience
Over the last 30 days, the price of SHIB has seen an increase exceeding 25%, driven by a shift in trader investment towards memecoins following slight pullbacks in Bitcoin’s price. Investors who previously bought SHIB during an earlier surge may find their patience rewarded shortly, as SHIB appears to be preparing for another potential surge.
IntoTheBlock’s data indicates that after a consolidation period, SHIB has finally kicked off a bullish trend. Yet, this upswing could be declining as profit-seeking investors may soon withdraw. Currently, a robust support level has formed around $0.0000085, with 67,000 addresses holding a total of 54 trillion SHIB, dominating the resistance faced at the $0.000009 level, where 47,000 addresses hold approximately 30 trillion SHIB.
Despite the bullish trend, a significant 951,000 addresses are reportedly still at a loss, representing over 73% of SHIB holders. Analysis suggests that as the price touches $0.000009—a level not seen in three months—holders may grow impatient in holding and opt to sell their stakes for a profit, potentially shifting their focus to more volatile memecoins like PEPE.
This shift in investment could create a challenging sentiment for SHIB to maintain its upward rally towards the $0.00001 mark. Increased resistance at higher price levels might lead to a price correction for SHIB as the market adjusts to the changes in supply and demand.
What’s Next For SHIB Price?
Investors are making efforts to boost SHIB’s price over the $0.000009 mark. During the last rally in August, they were unsuccessful at this price point, leading to anticipation of strong resistance from sellers. As of writing, SHIB price trades at $0.0000085, surging over 3.25% in the last 24 hours.
Current trends, such as the rising 20-day Exponential Moving Average (EMA) at $0.0000083 and the Relative Strength Index (RSI) holding strong in positive territory, suggest that momentum may be on the side of the bulls. Holding steady at the $0.0000087 threshold could tip the scales in favor of a breakthrough. In such a case, SHIB could be on its way to hitting the $0.0000093 level, which is considered a significant psychological barrier.
Conversely, to halt the upward trajectory, the bears need to pull memecoin’s value below the 20-day EMA quickly. Success in doing so may result in SHIB’s price testing the $0.0000075 level. A decline will trigger a consolidation of around $0.0000065.
Credit: Source link