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Current price action shows Shiba Inu (SHIB) is currently in a triangular formation whose breakout might send it on a substantial surge upwards. However, while the crypto continues to trade within this triangular pattern, on-chain data shows a strong resistance wall, which could pose a strong threat to a SHIB price increase in the short term.
According to data from IntoTheBlock, this interesting resistance wall sits around an average of the $0.000027 price level, which consists of 149,120 addresses that are holding 109 trillion SHIB tokens.
Major Hurdle For Shiba Inu
After a run to $0.0000287 in late May, Shiba Inu reversed to $0.0000237 in early June and has been stuck in a narrow trading range between $0.000023 and $0.000026. Interestingly, ITB data correlates this price level with a resistance worth monitoring. What this means is that there’s a huge SHIB sell wall just above $0.000026 that bulls have been unable to break through.
The sell wall shows massive resistance as there are many addresses that could sell their holdings and block further price increases. Although this sell wall consists of holders holding between the maximum and minimum prices of $0.000025 and $0.000030, respectively, the most important price is just below an average price of $0.000027.
For Shiba Inu to barrel through this sell wall, it needs a huge amount of buying pressure and momentum from both whales and retail investors. Fortunately, the token has seen an uptick in whale activity in the past few days, with one particular whale gobbling up over 715 billion SHIB in just a matter of hours.
SHIB Bulls To Keep Pushing
Shiba Inu has yet to return to the $0.000030 threshold in the past two months. Despite various accumulation from the bulls, many traders continue to sell since it reached a two-year high in March 2024. However, if Shiba Inu does manage to overcome this massive sell wall, its price could go parabolic rather quickly. Despite the looming sell wall, significant support exists at $0.000023, preventing an outstanding decline for SHIB.
At the time of writing, SHIB is trading at $0.00002392 and is down by 5.35% in the past 24 hours. As mentioned earlier, the recent price movement resembles that of a triangular formation on the price chart. Currently, SHIB is testing the lower end of the formation and could continue to decline until it reaches the support at $0.000023. A bullish reversal is likely to occur at this point, and the meme coin could kickstart a move to the upper end of the triangle at $0.000028.
For this to happen, the bulls will need to simultaneously clear the sell wall at $0.000027, which would give SHIB a free run to another key price level at $0.000032.
Featured image from Reddit, chart from TradingView
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