- SHIB consolidates beyond the $0.0000158 – $0.0000193 demand zone.
- Transaction data suggests SHIB is in a crucial support zone and might see a near-term downswing.
- Large investors’ absence shows the uptrend may be temporary.
Shiba Inu (SHIB) sliced critical support barriers during its latest sudden fall, and the meme coin consolidates at the moment. For now, market players may expect Shiba Inu to record a relief rally from its immediate footing.
SHIB Coils Up
Shiba Inu suffered continued downswings since touching its ATH on 28 October last year. The downtrend shattered multiple support zones. For now, the DOGE competitor tests the 9Hr demand region, stretching between $0.0000158 and $0.0000193.
Market players can expect SHIB to maintain beyond this footing before a breakout from the consolidation, showing bulls’ preference. The resulting upward move might pause at 200-day SMA at $0.0000251.
Though unlikely, the 25% surge might continue to 38% as the alt retests weekly resistance line at $0.0000283, almost matching the 50-day Simple Moving Average near $0.0000297.
The IntoTheBlock’s GIOM model supports the bounce from the mentioned demand area by SHIB. The on-chain metric suggests that nearly 101,740 addresses that bought 469,850 billion Shiba Inu tokens at $0.0000170 average price remain below. Therefore, these investors may want to accumulate more amid any selling strength, absorbing the pressure of sellers.
Though things seem up for the canine-themed token, large transfers worth over 4100,000 appear on a downtrend within the last three months. Such translations have dropped by nearly a half to 104 from 219, suggesting investors avoid SHIB at its current prices.
A daily candle close beneath the demand zone at $0.0000158 – $0.0000193 will form a lower low, putting most holders within the range ‘out of money.’ SHIB will suffer massive selling momentum should these individuals offload their Shiba Inu holdings. That would invalidate the bullish case for the token. Moreover, Shiba In might fill the FVG (fair value gap) before retesting the 8-decimal support near $0.0000787.
What are your thoughts about meme coins so far this year? Will the alts dominate as they did in 2021? Feel free to leave comments in the section below.