Shiba Inu is exhibiting interesting price action as it looks to break above a downward-sloping upper trendline under which it has been trading since the first week of March. Currently, SHIB is up by 10% in the past seven days and is at a decisive junction of a breakout that could lead to a strong bullish action. Failure to exhibit a strong breakout could lead to a reversal into bearish action.
However, although SHIB is looking prime for a breakout, data shows there are still multiple resistance levels to overcome. Particularly, on-chain data from IntoTheBlock (ITB) reveals multiple walls of addresses between the current price and $0.000139.
Shiba Inu Looking To Break Above $0.0001
At the time of writing, SHIB is trading at $0.00002494. Recent price action in the past 24 hours indicates that the bulls are now looking to push the cryptocurrency above the $0.000025 price level. This indicates that many investors are still bullish on SHIB.
According to data from ITB, around 62,700 addresses purchased 69.97 trillion SHIB at this point at an average price of $0.000025. Although SHIB will eventually break through, there are still five resistance walls to overcome on its way to reaching a new all-time high. These price walls consist of a range of addresses that could initiate selloffs immediately after breaking even.
Interestingly, there are around 454,160 addresses holding over between the current price of Shiba Inu and the current all-time high of $0.00008845. The first major resistance is at an average price of $0.000028, where 98,230 addresses are holding around 40.17 trillion SHIB tokens. This range of addresses bought in at a maximum price of $0.00003 and SHIB would need to break above this price point before the next resistance.
After surpassing this maximum price, Shiba Inu would be facing another resistance at around $0.000033 where 143,280 addresses are holding 21.3 trillion SHIB tokens. Shiba Inu would need to breach an additional barrier at an average price of $0.000040. There are only 57,180 addresses waiting here with a maximum and minimum price of $0.000036 and $0.000044 respectively.
However, this level represents a major psychological barrier as SHIB has yet to perform a strong break above $0.000040 this year. A rally up to this point could lead to a consolidation in the short term as many traders sell and take profits. At the same time, it could also lead to an increase in accumulation which in turn could translate to a stronger bullish sentiment.
The path to $0.000139 includes two other resistance levels with 62,340 and 92,530 addresses holding volumes of 33 trillion SHIB and 29.73 trillion SHIB respectively.
On the flip side, Shiba Inu would need to defend its current support at $0.000022 in the short term.
Chart from Tradingview.com
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