Shiba Inu (SHIB) continues to consolidate above its key support zone at $0.000012, raising questions over whether bulls can defend the level or if a deeper decline is imminent.
According to recent on-chain data, whales have been accumulating SHIB, while exchange net position flows have remained negative since August 17. Negative flows typically signal that tokens are being withdrawn from exchanges, often interpreted as accumulation by long-term holders.
The cost basis distribution heatmap highlights the $0.000012 region as a major demand zone where a significant portion of SHIB has been acquired. For bulls, protecting this level is crucial to avoid triggering a larger selloff.
Potential Downside Looms
Market analysts warn that if the $0.000012 support breaks, SHIB could drop as much as 15%, retesting its broader weekly range lows near $0.0000106.
On the weekly chart, SHIB remains range-bound between $0.0000106 and $0.000016, with shorter-term consolidation between $0.000012 and $0.000014. However, momentum indicators lean bearish:
The On-Balance Volume (OBV) has hit a new low, signaling strong selling pressure.
The Relative Strength Index (RSI) failed to break above the neutral 50 level, suggesting fading bullish momentum.
A descending trendline on the daily chart continues to highlight seller dominance.
Risky Buying Opportunity or Bearish Trap?
While the heatmap suggests $0.000012 is a crucial accumulation zone, the current lack of bullish confirmation makes it a high-risk buying opportunity. Traders may consider waiting for a clean breakout above $0.000014 before anticipating a rally toward the $0.000016 range highs.
At press time, Shiba Inu was holding just above $0.000012, but signs of weakness remain. Unless bulls can reclaim momentum, SHIB risks further downside despite whale accumulation trends.
The post appeared first on CryptosNewss.com