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Amid the ongoing recovery effort, Shiba Inu has multiple resistance roadblocks to conquer before reaching a new yearly peak.
SHIB Rallies Alongside Broader Market
The broader crypto market staged a rebound campaign last week, and Shiba Inu was not left out. The meme coin initially spiked over 19% from $0.000011 on July 8 to a seven-week peak of $0.00001386 on July 11 before retracing slightly.
Notably, this initial rally coincided with Bitcoin (BTC) soaring to a new all-time high above $118,000 within the same timeframe. Now, while SHIB failed to even claim a new yearly peak during this rally, it actually outperformed Bitcoin, as the premier crypto asset only surged 9% during its run to $118,000.
Supply Clusters Shiba Inu Must Breach Before $0.000035
Onchain data reveals massive supply clusters that contributed to this roadblock, with five clusters existing between Shiba Inu and a new yearly peak of $0.000035.
If Shiba Inu successfully breaks above this cluster, a second supply wall exists between the $0.000014 and $0.000019. Notably, this supply wall represents the largest roadblock SHIB would face on its journey to greater heights. For context, this cluster features 150,260 addresses holding up to 511.78 trillion SHIB tokens.
Since these wallets bought their tokens between $0.000014 and $0.000019, when the price grows to this range, they are likely to start selling off at breakeven or a mild profit. This would contribute a more substantial selling pressure to the price, considering the massive volume at this price level.
However, if the bulls overcome this $0.000014 to $0.000019 range, they would come face to face with a third cluster which rests between $0.000019 and $0.000024. Notably, at this range, 134,960 wallets procured 175.77 trillion SHIB, making it the second-largest supply cluster.
After this, there is another supply wall lying between $0.000024 and $0.000029, where 185,560 addresses bought 30.95 trillion tokens. Interestingly, Shiba Inu is likely to face a last roadblock at the range of $0.000029 to $0.000035, which, if overcome, allows the meme coin to reach the $0.000035 region.
The last time SHIB saw the $0.000035 level was during the meme coin rally in March 2024. Within this period, SHIB soared to a peak price of $0.00004563. Beyond this level, the remaining price clusters before the $0.000088 all-time high could easily be breached.