Shiba Inu coin ($SHIB ) has experienced a continuous downtrend, recently dropping to $0.00001000. Despite improvements in broader market conditions, Shiba Inu faces challenges due to a large resistance area resulting from a significant supply of coins.
As a result, growth potential may remain $SHIB
Limited until this supply surplus is addressed.
Shiba Inu faces a wall
Shiba Inu is currently facing a massive supply zone of 33 trillion SHIB, worth slightly less than $400 million. This supply was initially purchased at prices below $0.00001200, and investors are now under pressure due to the recent price drop.
The potential selling by early investors is a key factor limiting the growth of price $SHIB . With the price struggling to break the $0.00001200 level, the supply zone remains a significant obstacle. Investors holding these coins at a loss may look to exit, which could hinder SHIB's recovery.
IOMAP chart for Shiba Inu.
Technically, the Moving Average Convergence Divergence (MACD) indicator is approaching a bullish crossover, indicating a potential reversal for Shiba Inu. The MACD has been in a bearish crossover for about a month, contributing to the downtrend and keeping price #SHİB under pressure. However, as the MACD approaches a bullish crossover, it may indicate that bearish momentum is waning.
A bullish crossover on the MACD indicator would indicate the end of the month-long downtrend and could provide the necessary momentum for SHIB to break through resistance levels. This technical signal suggests that investor sentiment may turn positive, and Shiba Inu could see a price rebound if the broader market continues to show strength.
MACD indicator for Shiba Inu.
SHIB price needs to break out of the downtrend
Currently, Shiba Inu's price is trading at $0.00001169, with a slight increase of 10% over the past 24 hours. The altcoin is attempting to secure the $0.00001141 level as support. If SHIB holds this level, it could form a short-term stabilization point, but a sustained rise above $0.00001200 still poses a significant challenge due to current resistance.
Mixed market signals may prevent SHIB from breaking the downtrend line, keeping the price below $0.00001252. If resistance remains intact, a drop back to $0.00001059 or even lower is possible. This is likely to keep SHIB in a consolidation phase, limiting its ability to make significant gains.
Shiba Inu price analysis.
However, if Shiba Inu can break through the downtrend line and convert $0.00001252 into support, it could lead to a more significant rise. This price movement is likely to push SHIB towards $0.00001354, negating the current bearish outlook. If bullish momentum continues, it could signal the beginning of a more sustainable uptrend for Shiba Inu.