u.today
Shiba Inu ($SHIB) price action has gained attention in recent days as it battled a much-watched key resistance.
However, the latest developments indicate a stall in the $SHIB rally, prompting a closer examination of market trends, on-chain data and technical indicators.
The crux of the $SHIB price action is a key price range between $0.000024 and $0.000026, where 58.91 trillion $SHIB were bought by 63,840 addresses at an average price of $0.000025, according to IntoTheBlock data.
As $SHIB approached the 58 trillion token threshold, the momentum that had propelled its price began to wane. This level has become a critical point of resistance, where bullish sentiment started to falter.
Shiba Inu steadily declined for three days after reaching highs of $0.00002684 on May 22. Price rebounded before selling resumed with $SHIB battling to stay above the daily SMA 50 at $0.0000245 in today's trading session.
At the time of writing, $SHIB was relinquishing its prior day gains, down 0.08% in the last 24 hours to $0.00002482.
Although the exact reason for the $SHIB price slowdown remains unknown, market dynamics and other factors might have come into play.
The slowing at this point might suggest that the market is taking a moment to consolidate gains and consider the next move. Traders may be taking profits, while others could be waiting for a clearer signal to take action. Additionally, the overall sentiment in the crypto market plays a crucial role, as broader market trends often influence the performance of individual tokens.
For $SHIB to regain its upward momentum, it might likely need to overcome the 58 trillion $SHIB threshold with renewed buying interest. The broader market movements may also need to be monitored to determine the $SHIB price's next move.
If the market regains momentum, a break past the $0.00002684 level might be needed to ascertain the start of a $SHIB upside move. If this happens, $SHIB might target the $0.00003285 level. In this scenario, $SHIB might need to sustain above the daily SMA 50 at $0.0000245 to prevent further declines.
If $SHIB drops below the daily SMA 50 level, support is envisaged at $0.00002334 and $0.00002155.