Shiba Inu price showed a slight uptick of 0.5% to $0.000014 during a low volatility Saturday. After the Thursday rally, the cryptocurrency market has been trying to stabilize as the Bitcoin price seeks support at $60000. Will the renewed bullish momentum push a higher rally, or are sellers waiting for a comeback?

Shiba Inu Price Poised For Bearish Reversal

This week, the crypto market experienced a fresh relief rally, as BTC price analysis revealed a surge from a low of $49,000 to $61,000—marking a 24% increase. As expected, the volatile Meme cryptocurrency sector provided some of the most significant market movers.

Shiba Inu, the second largest meme coin by market capitalization, saw its price rise from $0.00001 to $0.000014, a 30% increase. With sustained buying, the buyers could drive a 3.5% jump before facing resistance at the wedge pattern’s trendline at $0.000015.

Since March 2024, the two converging trendlines, which act as dynamic resistance and support, have carried a steady correction trend in the SHIB coin price. 

Moreover, the In/Out of the Money Around Price (IOMAP) metric highlights that around 9.11K addresses hold over 50T SHIB tokens at an average purchase price of $0.000015. This overhead supply at a loss could sell their tokens at break-even in anticipation of a market correction, further bolstering the selling momentum.

In/Out of the Money Around Price | Intotheblock

The Average Directional Index (ADX) slope above 35% indicates that sellers remain the dominant force in the market.

Thus, a potential reversal could plunge the Shiba Inu price by 28% to rest $0.00001 psychological level.

SHIB/USDT – 1d Chart

In contrast, Intotheblock analytics reveal a 30% surge in Shiba Inu’s active addresses, rising from 3.63k to 4.73k within the last 24 hours. Additionally, zero-balance addresses have doubled, increasing from 1.03k to 2.03k. 

This uptick in on-chain metrics suggests a growing interest in SHIB, which could lead to increased liquidity and trading activity.

Addresses Stats | Intotheblock

Moreover, the falling wedge pattern is typically marked as a reversal pattern and can boost a notable recovery after a key resistance breakout. Therefore, a potential breach of the overhead trendline could signal the end-of-correction trendline. 

The post-breakout rally could propel the Shiba Inu price 40% up to hit the $0.00002 level, followed by $0.00003.

The post Shiba Inu Price Stalls at Resistance with 50T SHIB in Play; What’s Next? appeared first on CoinGape.

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Filed under: News - @ August 10, 2024 1:15 pm