Dog-themed cryptocurrency Shiba Inu (SHIB) is grappling with limited support below its current trading range.
According to IntoTheBlock Global In/Out of Money indicator, the next support range for SHIB lies between $0.000019 and $0.00002, where nearly 16.66 trillion SHIB are held by 16,320 addresses. Though significant, this cluster, however, represents a smaller support base.
While this support could offer some defense against price declines in the very near term, its size suggests that there may not be enough buying pressure to sustain the current price levels if selling pressure increases.
At the time of writing, SHIB is trading at $0.0000217, down 0.54% in the past 24 hours, mirroring the lackluster trading action as 2024 draws to a close.
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Shiba Inu has oscillated in a range within its daily moving averages since it rebounded from lows of $0.0000185 on Dec. 20.
Potential scenarios
After two days of declines, Shiba Inu rebounded from lows of $0.0000213 in Friday's session. The rally extended in today's session but is currently facing resistance at the $0.000022 level.
Amid the current consolidation in Shiba Inu, the market is awaiting stronger momentum to either break higher or test lower levels of support.
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The range between $0.000019 and $0.00002 is the nearest support zone, according to on-chain data, but its relatively small size compared to larger clusters higher up raises the risk of a breakdown if bearish momentum intensifies. In this kind of scenario, the next major support lies between $0.000014 and $0.000019 where 532.56 trillion SHIB are being held by 134,810 addresses.
On the upside, SHIB might need to surpass $0.0000223 to sustain the current rebound, with stronger resistance at $0.000024. A break in either direction beyond the daily SMA 200 and 50 at $0.0000187 and $0.0000259, respectively, would determine Shiba Inu's next move.
A break above the daily SMA 50 would establish Shiba Inu recovery, pushing its price to $0.00003 or even $0.000033.
