The current price action shows that Shiba Inu (SHIB) is currently at triangular formation whose escape may send him to significant growth upwards. However, while the cryptocurrency continues to trade within this triangular pattern, on-chain data shows a mighty wall of resistance that could pose a stern threat to the SHIB price rally in the low term.
According to IntoTheBlock data, this intriguing resistance wall is at an average price level of USD 0.000027, which consists of 149,120 addresses containing 109 trillion SHIB tokens.
The main obstacle for the Shiba Inu
After falling to $0.0000287 in slow May, the Shiba Inu price returned to $0.0000237 in early June and was stuck in a tight trading range between $0.000023 and $0.000026. Interestingly, ITB data correlates this price level with resistance worth monitoring. This means that there is a huge sell wall for SHIB just above $0.000026 that the bulls have not been able to breach.
The sell wall shows huge resistance because there are many addresses that could sell their shares and block further price increases. While this sell wall consists of holders with high and low prices of $0.000025 and $0.000030 respectively, the all-important price is just below the average price of $0.000027.
For a Shiba Inu to break through this sales wall, it needs enormous pressure and purchasing dynamics whales and retail investors alike. Fortunately, the token has seen an augment in whale activity over the past few days, with one particular whale devour over 715 billion SHIB in just a few hours.
SHIB bulls press on
Shiba Inu it has not yet returned to the $0.000030 threshold in the last two months. Despite various accumulations by bulls, many traders have continued selling since it reached a two-year high in March 2024. However, if the Shiba Inu manages to overcome this massive sales wall, its price could go parabolic quite quickly. Despite the looming sell wall, there is significant support at $0.000023, preventing a significant downside 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 movement resembles a triangle formation on the price chart. Currently, SHIB is testing the lower boundary of the pattern and may continue falling until it reaches the support at $0.000023. At this point, a bullish reversal is likely to occur and the meme coin may start moving towards the upper end of the triangle at $0.000028.
For this to happen, bulls will need to simultaneously break through the sell wall at $0.000027, which will give SHIB a free run to the next key price level at $0.000032.
Featured image from Reddit, chart from TradingView
