Shiba Inu price remains under bearish pressure amid lackluster performance across the broader cryptocurrency market. Following this downtrend, nearly 77% of SHIB holders are in losses, with the lack of profitability dampening the market sentiment.
SHIB price trades at a weekly low of $0.0000153 today after a 3.55% drop in 24 hours. On-chain data reveals a key resistance zone, a breakout of which could spark a bullish reversal.
700T SHIB Holders Underwater At This Key Resistance Zone: Why it Matters?
According to IntoTheBlock data, addresses that bought 757 trillion SHIB bought above $0.000016 are “Out of the Money”. Out of this amount, 637 trillion SHIB tokens, or 84% of the underwater, were purchased between $0.000016 and $0.000024.
Approaching the $0.000018 level or clearing the $0.000022 hurdle would make majority of the underwater SHIB token holders to be profitable again. Hence, the $0.000018 to $0.000022 is a key resistance zone that needs to be overcome for Shiba Inu price to resume an uptrend.
The aforementioned uptrend is contingent that these investors do not book profits at breakeven.
Is Shiba Inu Price on the Verge of a Breakout?
Analysts are bullish on SHIB’s price today despite the recent drop to weekly lows. According to VipRoseTr, SHIB shows signs of a bullish reversal after recovering from a key accumulation zone between $0.000012 and $0.000014.
If SHIB continues trading above this support zone, the analyst noted that it could target the next resistance zone at $0.00002338, with a sustained rally set to push the price to a multi-month high of $0.0000365.
Another analyst, Javon Marks, also added that SHIB had broken out of a falling wedge pattern. This pattern usually suggests a bullish reversal, with the analyst projecting that the meme coin could surge by 422% to its all-time high of $0.00008841.
Despite this bullish Shiba Inu price forecast, the daily chart shows that bears remain in control.
Sellers Continue to Weigh on SHIB
Shiba Inu’s 1-day chart shows that SHIB remains under bearish pressure, with the Relative Strength Index (RSI) dropping to 36. If the RSI continues to fall and hits oversold levels, it could mark a turnaround for SHIB price. However, a breach of support at $0.0000145 could extend the downtrend.
Additionally, the Moving Average Convergence Divergence (MACD) line is trending below the signal line, indicating that the trend remains bearish.
Sellers might continue to weigh on Shiba Inu’s price until it makes a decisive breakout past the $0.000018 zone, at which point many holders will start becoming profitable again. This break out could shift the market sentiment.
The post Nearly 700,000,000,000,000 SHIB Will Become Profitable If Shiba Inu Price Clears This Level appeared first on CoinGape.
