With Bitcoin dominantly surpassing the $35,000 level, the memecoin sector is experiencing a wave of heat. In recent trading sessions, leading memecoins such as Dogecoin, PEPE, and Shiba Inu have posted solid gains, indicating renewed investor interest. Despite this upward trend, the Shiba Inu wave is facing a potential roadblock. On-chain data suggests that SHIB could face a sell-off if it breaches the $0.000009 mark, creating a bearish possibility on its ongoing rally.
These holders could end their patience
Over the past 30 days, SHIB’s price has risen more than 25%, driven by a shift in merchant investments toward memecoins following a slight decline in Bitcoin’s price. Investors who previously bought SHIB during a previous surge may soon see their patience rewarded as SHIB appears to be preparing for another potential surge.
IntoTheBlock’s data shows that SHIB has finally entered a bullish trend after a consolidation period. Still, this rebound could fade as profit-seeking investors could soon pull out. Currently, a robust support level has formed around $0.0000085, with 67,000 addresses holding a total of 54 trillion SHIB. This dominates the resistance at the $0.000009 level, where 47,000 addresses hold approximately 30 trillion SHIB.
Despite the bullish trend, a significant number of 951,000 addresses are still reportedly experiencing losses, representing more than 73% of SHIB holders. Analysis shows that if the price hits $0.000009 – a level we haven’t seen in three months – holders may become impatient to hold and choose to sell their shares for a profit, potentially shifting their focus to more volatile memecoins like PEPE.
This shift in investments could create challenging sentiment for SHIB to maintain its upward rally towards $0.00001. Increased resistance at higher price levels could lead to a price correction for SHIB as the market adjusts to changes in supply and demand.
What’s next for the SHIB Prize?
Investors are doing their best to push SHIB’s price above the $0.000009 mark. During the last rally in August, they were unsuccessful at this price level, leading to expectations of strong resistance from sellers. At the time of writing, SHIB price is trading at $0.0000085, up over 3.25% in the last 24 hours.
Current trends, such as the rising 20-day Exponential Moving Average (EMA) at $0.0000083 and the Relative Strength Index (RSI) remaining strong in positive territory, suggest that momentum could be on the bulls’ side. If we hold steady at the $0.0000087 threshold, the balance could tip in favor of a breakout. In such a case, SHIB could be on its way to reaching the $0.0000093 level, which is considered a major psychological barrier.
Conversely, to stop the upward trajectory, the bears must quickly push the value of memecoin below the 20-day EMA. Success in this could lead to SHIB’s price testing the $0.0000075 level. A decline will cause a consolidation of around $0.0000065.