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SHIB Faces Resistance Despite Significant Growth Potential: Analyst

source-logo  coinedition.com 11 December 2023 14:32, UTC

Shiba Inu (SHIB) has seen a 55% increase in the last three months, staying relatively quiet during the recent altcoin season, according to Ali, a renowned crypto analyst on X (formerly Twitter). Ali noted that SHIB faces major resistance despite significant potential for growth. He also observed that nearly 90,000 addresses hold over 422 trillion SHIB at $0.000016. Ali fetched the data for his analysis from IntoTheBlock, a blockchain data-providing firm.

#ShibaInu has seen a 55% increase in the last 3 months, staying relatively quiet during the recent altcoin season.

While there's potential for growth ahead, $SHIB faces a major resistance zone. Nearly 90,000 addresses hold over 422 trillion #SHIB at $0.000016. pic.twitter.com/LE6kpLb1Or

— Ali (@ali_charts) December 9, 2023

A further breakdown of the SHIB distribution by IntoTheBlock showed that only 25.92% of SHIB holders are currently “In The Money.” That represents SHIB holders who are in profit at the current market price. This category holds 254.63 trillion SHIB, equivalent to $2.61 billion.

A higher percentage of Shiba Inu users are currently on the losing side. This category represents 59.87% of all SHIB holders and holds 588 trillion SHIB, worth $6.04 billion. IntoTheBlock describes this group of SHIB holders as “Out Of The Money.”

Those “At The Money,” representing holders who purchased SHIB around its current price, constitute only 14.21% of Shiba Inu holders. They hold 139.57 trillion SHIB, amounting to $1.43 billion, according to data from IntoTheBlock.

Traders use the token distribution to analyze the market for specific cryptos and predict the future behavior of investors. From the SHIB distribution shown by IntoTheBlock, many traders would expect more liquidity injection to move the majority of holders out of their current losing positions. Hence, Ali projects that SHIB has a growth potential.

SHIB traded for $0.00001025 at the time of writing, gaining 35% in the last three weeks. The recent rally started on November 21, when the price bounced off a local low at $0.00000761. SHIB climbed to $0.00001067 before dropping slightly to trade at its current price.

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