May 29, 2024

Shiba Inu is well positioned to reclaim its all-time high of $0.00008845, but several supply walls, with a total volume exceeding 63 trillion SHIB, pose obstacles.

SHIB declined to $0.000045 last month under pressure from the sellers. However, moderate improvement in the broader crypto market has pushed SHIB to $0.000028. This is a 22% recovery from the March 20 bottom of $0.00002366. Will Shiba Inu surmount these supply walls to reclaim its all-time high?

Shiba Inu Battling with Supply as It Attempts to Continue Rally

Shiba Inu faces four major supply walls to rally to its ATH price of $0.00008845. These four supply walls contain 63.76 trillion SHIB tokens, around 10.8% of the circulating supply. 

About 352,190 addresses, approximately 26.2% of the total addresses holding Shiba Inu, purchased these 63.76 trillion SHIB tokens. Such a large volume of SHIB tokens creates a tough barrier to price ascent.

Notably, most SHIB holders acquired their holdings between $0.000031 and $0.000036. In this range, 137,600 addresses hold a whopping 20.96 trillion SHIB, creating massive resistance and preventing a rally to $0.00003. Once Shiba Inu initiates a rally above these levels, these holders capitalize on it to take profits, creating sell pressure.

Shiba Inu attempted a recovery on March 28 when it touched a high of $0.00003285. However, high selling pressure prevented it from ascending further.

If SHIB overcomes the $0.000036 resistance, the next test from the sellers will be between $0.000037 and $0.000040. The volume of SHIB in this price region is 7.54 trillion SHIB, which is one of the supply walls.  

However, the last sell (supply) wall is the strongest and lies between the $0.000057 and $0.000139 price range. This region has the largest volume of 29.71 trillion SHIB, making it quite difficult to break above.

Shiba Inu Narrative Changing to Bullish

Despite the selling pressure, data from CryptoQuant reveals that Shiba Inu reserves on exchanges have reduced by 1.41%. This reduction in the past week moved the amount of SHIB reserved on exchanges to 153.8 trillion. This means the selling pressure on the asset is declining.      

Also, the derivatives volume has increased by 16.89% to $229.8 million, with the open interest (OI) increasing by 5.58% to $90.2 trillion. These metrics confirm that investors are bullish on SHIB, and the selling pressure is gradually fading.    

Further, Coinglass data reveals that SHIB’s long/short ratio is currently at 1.0186, confirming that more investors are bullish on the token.

How is SHIB Faring Today?

SHIB is in a sideway trend today, with critical support at $0.00002814, preventing further decline. Remarkably, the upper wick of today’s candle is testing the $0.00002981 resistance level as the buyers re-enter the market.  

A break above this level will send SHIB to the upper Bollinger Band to trade at $0.00003179. Notably, the Relative Strength Index (RSI) is 52.28, emerging from the neutral zone. If the RSI rises to 60, the buyers will have regained control, and the SHIB will record higher highs. 

Based on the market’s prevalent bullish sentiment, SHIB will likely break above the $0.00002981 level in the coming days. However, this is not investment advice, so investors must conduct research and manage risk exposure properly.

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