Shiba Inu (SHIB) has been a favorite in the meme cryptocurrency space, but recent on-chain data reveals a troubling trend. The critical support level, held by approximately 33 trillion SHIB, is losing steam, raising concerns among investors. As SHIB consolidates within a triangle pattern on its daily chart, the possibility of a breakout looms. However, if this support zone fails, it could spell a significant retracement for the digital asset.
The Shaky Ground Beneath SHIB
On-chain analysis indicates that the $0.000022 to $0.000023 price range, which is currently maintained by about 45.78% of in-the-money addresses, is under pressure. This zone has shown substantial buying activity, contributing to its stability. Despite this, potential selling pressure from out-of-the-money addresses at the $0.000025 resistance level is creating headwinds.
The crucial question is whether the existing buying interest can withstand the mounting selling pressure. The consolidation within a triangle pattern typically precedes a breakout, but it remains uncertain whether SHIB will surge upwards or plummet if the support level fails.
Potential Downside Risks
If SHIB breaches the $0.000022 support, it could trigger a substantial decline towards the next significant support levels at $0.000018 and $0.000019. These levels correspond to previous buying zones and could act as buffers against further drops. The concentration of red zones above $0.000025 suggests that SHIB faces formidable resistance in climbing higher without a notable increase in buying demand.
The In/Out of the Money data paints a bleak picture, showing a precarious balance between buying and selling activities in the current price range. If the confidence in the support level continues to erode, SHIB may face a downward spiral, making it critical for investors to monitor these support zones closely.
The Path Forward
For SHIB to avert a significant retracement, a spike in demand and buying interest is imperative. The current consolidation phase could lead to a breakout, but the direction will largely depend on whether SHIB can maintain its crucial support or succumb to selling pressure.
Investors should keep an eye on the $0.000022 threshold. Breaching this level could lead to a swift move down to $0.000018 or $0.000019. Conversely, a successful defense of this support might provide the impetus needed for SHIB to challenge higher resistance levels.
Conclusion
Shiba Inu’s current predicament underscores the volatility and unpredictability inherent in meme cryptocurrencies. While the asset has enjoyed considerable popularity, its future trajectory hinges on the strength of its support levels and market demand. As SHIB teeters on the edge, investors should brace for potential volatility and prepare for various scenarios.
The next few days and weeks will be crucial for SHIB. Whether it manages to hold its ground or slips into a deeper retracement will set the tone for its near-term future. As always, conducting thorough research and staying informed about market trends and on-chain data is essential for making informed investment decisions in the volatile world of cryptocurrencies.
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