Shiba Inu Faces Resistance Walls on the Road to Recovery, Can Bulls Break Through?
Shiba Inu (SHIB), the popular meme coin, is looking to climb back after a rough April. The broader cryptocurrency market is also showing signs of recovery, creating a potentially bullish environment for SHIB. However, on-chain data suggests there may be some hurdles on the way to its target price of $0.00005.
SHIB’s Price Rally and Upcoming Challenges
SHIB has gained 7.15% so far in May, aiming to surpass its yearly high of $0.000045. However, data from IntoTheBlock’s Global In/Out Money (GIOM) metric indicates potential resistance zones. The first hurdle is the Fibonacci 0.5 retracement level at $0.00002721. Once breached, SHIB faces three more sell walls before reaching $0.000045 and another before hitting a new yearly high above $0.00005.
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The first sell wall sits between $0.000026 and $0.00003, where over 115,790 addresses hold a combined 56.37 trillion SHIB. The second wall is around $0.000033, where roughly 140,830 wallets purchased 21.06 trillion SHIB. Breaching this level would bring SHIB to its yearly peak of $0.00004567.
The final hurdle before surpassing the yearly high is a sell wall between $0.000045 and $0.000056, where 62,510 addresses hold 3.32 trillion SHIB. In total, these four resistance zones present a combined obstacle of 78 trillion SHIB tokens.
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Can SHIB Bulls Overcome the Challenges?
To reach $0.000056, SHIB needs a 130% increase from its current price of $0.00002428. While this might seem daunting, SHIB has demonstrated similar growth before. During the late February upswing, the coin surged a remarkable 372% within eight days.
However, replicating that performance requires a shift in market sentiment. Currently, the SHIB Long/Short Ratio on derivatives exchanges sits at a bearish 0.845. However, there are positive signs. Investors are transferring SHIB off exchanges, potentially indicating a belief in future price increases. Over $5.54 million worth of SHIB has been moved off exchanges in the last day.
Conclusion
Shiba Inu faces resistance walls on its path to recovery, but historical performance suggests these hurdles can be overcome. A positive shift in investor sentiment and continued buying pressure are crucial for SHIB to reach its target price. With the broader market seemingly on the upswing, the upcoming weeks could be pivotal for SHIB’s future.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
