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May 18, 2024
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Shiba Inu Nears Crucial Resistance Level! Will SHIB Price Break Free From Bearish Territory Or Retreat?

The post Shiba Inu Nears Crucial Resistance Level! Will SHIB Price Break Free From Bearish Territory Or Retreat? appeared first on Coinpedia Fintech News

As the cryptocurrency market shows minor signs of rebounding in the last 24 hours, Shiba Inu is signaling a potential bullish recovery as it approaches a key resistance level. After plummeting to its monthly support threshold, the SHIB token has staged a bullish turnaround, backed by mixed on-chain indicators. 

Shiba Inu’s Long-Term Holders Remain Confident 

Shiba Inu appears insulated from the recent market selloff as Shibarium consistently achieves new highs in daily transactions—indicating increased activity within its ecosystem. Notably, long-term investors are displaying growing confidence in SHIB, as evidenced by the rising number of their wallet addresses. Meanwhile, the count of short-term holders is declining, suggesting that SHIB is becoming increasingly attractive as a long-term investment.

Based on data from IntoTheBlock, the number of long-term holders (holding for more than one year) reached an all-time high of 903.48K on September 12. Meanwhile, the counts of both cruisers and traders have decreased within the same period. 

Additionally, SHIB’s recent slump to its support level of $0.000007 served as a prime accumulation point for whales. Data shows that large transaction volumes soared to $36 million as big players took advantage of the dip, taking the price out of the bearish region. However, this metric dropped to $17 million the following day as some investors cashed in for immediate profits.

While this could imply a short-term selling pressure for SHIB, it’s actually a bullish sign for the meme coin in the long run. The whale activity suggests a defense against any drastic decline from the current support level. Moreover, as SHIB maintains stability near its immediate resistance, this is likely to generate increased buying pressure and network activity, pushing the token’s value upward.

What’s Next For SHIB Price?

SHIB’s price has been experiencing a quick adjustment after sellers failed to plunge the meme coin below the support of $0.000007. However, sellers are capitalizing on short-term recoveries up to the 20-day EMA as Shiba Inu struggles for a further rally, signaling ongoing bearish sentiment. As of writing, SHIB price trades at $0.0000073, surging over 0.6% from yesterday’s rate. 

The bulls’ consistent inability to drive the price above the 20-day EMA indicates that downward momentum is the more likely trajectory. If the bears manage to pull the price below the immediate support level of $0.000007 again, the SHIB price might decline to $0.0000061 and potentially even to $0.0000054.

On the flip side, the bulls aren’t likely to sit idle. They aim to send the price past the 20-day EMA. Achieving this could set the stage for a run towards the key resistance level of EMA200 at $0.000008. Overcoming this barrier is crucial for the bears to prevent, as it could pave the way for a potential surge to $0.0000087.

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