Can SHIB Bulls Flip this $17M Resistance?

Shiba Inu’s price rebounded 25% from the market crash on Monday as it reached $0.000014 on Aug 8. However, on-chain data shows how a 5.83 million SHIB sell-wall threatens to halt the recovery phase.

Shiba Inu’s 25% Price Rebound Halts at $0.000014

Shiba Inu (SHIB) has demonstrated resilience in the face of recent market turbulence, rebounding 25% from the significant market crash on August 5.

Following a low of $0.000011, SHIB surged to $0.000014 by August 8, driven by a combination of bullish catalysts including ETF inflows, a $125 million fine on Ripple, and Russia’s decision to legalize cryptocurrency mining. However, as SHIB approached the $0.000014 resistance, the bullish momentum began to wane.

The recent uptick in SHIB’s price can be traced back to these catalysts, which generated optimism across the broader crypto market. Shiba Inu, benefiting from this sector-wide rally, saw its price jump nearly 33% in just three days, from its August 5 low to its August 8 high.

The price chart shows that after this steep rise, SHIB encountered a strong resistance level around $0.000014, where a significant volume of sell orders began to accumulate.

Residual Sell-Orders Stalls Bullish Momentum

Despite the initial bullish sentiment, the high incidence of existing sell-orders that mounted since Monday’s market crash appears to be nullifying the positive momentum. In the last 24 hours, SHIB has seen a 4% correction, pulling back from its recent high of $0.000014. This correction occurred as SHIB was unable to break through the resistance level, which coincided with a broader market retreat led by mega-cap assets hitting resistance points during the rally.

The exchange order books reveal that bears, who were in control just days ago, still hold a substantial volume of sell orders, obstructing SHIB’s advance above $0.000015.

The on-chain market depth chart for Shiba Inu (SHIB) indicates a bearish outlook, with sell orders outpacing buy orders. At an average price of $0.000014, there are about 5.43 trillion SHIB in sell orders compared to 3.03 trillion SHIB in buy orders, leaving a negative difference of 2.4 trillion SHIB, or approximately $17 million.

This demand short-fall suggests a lack of strong buying support, which could lead to further price declines if the trend persists.

Shiba Inu Price Forecast: Breaking $0.00015 Could Lead to More Gains

The Bollinger Bands on the price chart indicate that SHIB is currently trading near the lower band, suggesting it is in an oversold position, which could signal a potential bounce back. The Relative Strength Index (RSI) also hints at a possible bullish reversal, as it hovers near the oversold region.

If SHIB can maintain support at $0.000013 and buyers step in to absorb the selling pressure, the price could retest the $0.000015 resistance level. A successful breach of this level could open the door to further gains, with the next resistance point around $0.000018.

However, failure to hold the $0.000013 support could see SHIB retesting the $0.000012 level, where it previously found strong buying interest.

In conclusion, while the technical indicators suggest that more upside is possible, SHIB’s ability to break through the $0.000015 resistance will likely depend on the broader market sentiment and whether any new bullish news emerges to counteract the existing sell pressure. If these conditions are met, SHIB could see another leg up in its price movement.