Shiba Inu (SHIB) Faces Critical Resistance: Could a Drop to $0.000010 Be Imminent?

Shiba Inu (SHIB) is currently encountering significant resistance, and the popular memecoin may be headed for a downturn if it fails to break through key levels. Let's dive into the current state of SHIB and the important price zones that traders should monitor closely.

Challenges Mount for Shiba Inu

According to on-chain data from Glassnode, SHIB's Network Value to Transaction (NVT) ratio surged on September 14 and remains elevated. The NVT ratio measures the relationship between market capitalization and transaction volume. When this ratio is high, it suggests that the asset is potentially overvalued, hinting at a possible price decline. Conversely, a lower ratio would indicate undervaluation, signaling a chance for price recovery.

Adding to the bearish outlook is the In/Out of Money Around Price (IOMAP) indicator. It highlights key areas where a significant portion of SHIB holders have accumulated the token. Insights from IntoTheBlock reveal that SHIB is facing stiff resistance around $0.000014, where nearly 45 trillion tokens are held by over 10,700 addresses. This cluster of resistance is notably stronger than the support found between $0.000011 and $0.000013, raising concerns that supply may outstrip demand in the near term, potentially pushing SHIB's price lower.

Shiba Inu's Price Outlook: Breakout or Breakdown?

Shiba Inu (SHIB) is currently trading at $0.000013, down over 4% in the past 24 hours, with the next resistance at $0.000014. Since June, SHIB has been moving within a descending triangle pattern, typically signaling seller dominance and potential for further decline.

If SHIB falls below the triangle’s support, it could face a 20% correction, bringing the price to around $0.000010. However, a breakout above the resistance may invalidate the bearish outlook, potentially driving SHIB up toward $0.000016.

In short, SHIB’s future depends on overcoming the $0.000014 resistance; failure could lead to further downside, while a breakout may signal recovery. $SHIB