33 Trillion Shiba Inu (SHIB) Support Losing Steam: What's Happening?
2024-11-22

Shiba Inu's daily chart has been consolidating in a triangle pattern, suggesting a possible breakout in the near future. On-chain data does, however, point to a worrying pattern. There are indications that the asset is waning from its critical support in the $0.000022-$0.000023 range, which is held by roughly 33 trillion SHIB held by 45.78% of in-the-money addresses.
SHIB may experience a large retracement if this support zone breaks. The In/Out of the Money data shows that there is a lot of buying activity in this range, which is why the current price zone is holding up. However, there appears to be potential selling pressure in this area as a large number of out-of-the-money addresses dominate the resistance above $0.000025. SHIBUSDT Chart by TradingView">
These red zones grouping together suggests that SHIB will have a difficult time rising without a spike in demand for purchases. The subsequent significant support zones located at $0.000018 and $0.000019 could be the target of a decline due to waning confidence in the support level. In the event that the $0.000022 threshold is crossed, these levels, which correlate to past buying areas, might act as a buffer. 
SHIB trades close to the apex of the tightening triangle formation visible on the technical chart. Usually this pattern comes before a dramatic breakout or breakdown. SHIB's future course will probably be determined by the volume spike and market sentiment in the days ahead, given the unpredictability of the overall market. Important support in the event that SHIB's price drops will be the 200-day moving average, which is located at about $0.000018 and the trendline from the most recent rally.
The $0.000028 resistance could be the target of a breakout above $0.000025, which would rekindle bullish momentum. A breakout from the triangle pattern might push the asset toward higher resistance levels if SHIB's support at $0.000022 holds firm. A retracement could occur, though, if the buying momentum wanes or if there is general market weakness. For possible clues, investors should keep an eye on the $0.000022 support and the $0.000025 resistance.