• Shiba Inu price consolidates above the demand zone, extending from $0.0000158 to $0.0000193.
  • Transaction data shows that SHIB sits on a massive support level and that a short-term downswing is unlikely.
  • The lack of large investors’ footprint indicates that an uptrend will also be capped or lackluster. 

Shiba Inu price has sliced through significant support levels during its recent flash crash and is currently consolidating. Going forward, investors can expect SHIB to see a relief rally emerging off the immediate foothold. 

Shiba Inu price coils up

Shiba Inu price has been on a non-stop downtrend since its all-time high on October 28, 2021. The downswing has shattered several support levels and is currently testing the 9-hour demand zone, extending from $0.0000158 to $0.0000193.

Investors can expect Shiba Inu price to stay above this foothold and see a breakout from the current consolidation, favoring the bulls. The resulting uptrend is likely to be capped at the 200-day Simple Moving Average (SMA) at $0.0000251. 

Although unlikely, this 25% upswing could extend to 38% as it retests the weekly resistance barrier at $0.0000283, roughly coinciding with the 50-day SMA at $0.0000297.

SHIB/USDT 9-hour chart

SHIB/USDT 9-hour chart

Supporting a bounce from the said demand zone for Shiba Inu price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that roughly 101,740 addresses that purchased 469,850 billion SHIB tokens at an average price of $0.0000170 are present below.

Therefore, any minor selling pressure will be absorbed by these investors wanting to accumulate more.

SHIB GIOM

SHIB GIOM

While things are looking up for Shiba Inu price, the number of large transactions worth $100,000 or more seems to be on a downtrend over the past three months. Such transfers have almost halved from 219 to 104, indicating that these investors are not interested in SHIB at the current price levels.

SHIB large transactions

SHIB large transactions

A daily candlestick close below the $0.0000158 to $0.0000193 demand zone will create a lower low and put a large number of holders in this area, “Out of the Money.” If these investors decide to offload their holdings, it will create massive selling pressure, invalidating the bullish thesis for SHIB. This development could see Shiba Inu price fill the fair value gap and retest the eight-decimal support at $0.00000787.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP