The current Shiba Inu price action suggests that the dog-themed cryptocurrency might be approaching a critical support level of 40 trillion SHIB tokens.
According to IntoTheBlock data, 40.08 trillion SHIB are being held by 51,350 addresses in the range between $0.000019 and $0.000023, very close to Shiba Inu's current trading price of $0.0000232.
Support levels are crucial in technical analysis as they represent price points where buying interest tends to be strong enough to prevent further declines.
For SHIB, the 40 trillion token range has emerged as a critical support. If this support holds, it could serve as a foundation for a potential price rebound. Conversely, if it fails, SHIB could experience further downward pressure, possibly to $0.000014.
Currently, the market is witnessing a fierce battle between bulls and bears, each vying for control and attempting to push the price in their favor. Market sentiment is mixed, with some traders accumulating SHIB at current levels, while others might be selling to mitigate potential losses.
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The 40 trillion SHIB support level is currently in the spotlight as bulls and bears engage in a high-stakes tussle. The outcome of this battle could set the tone for SHIB’s short-term price direction. Whether the bulls will successfully defend the support or the bears will push through remains to be seen.
Bulls and bears tussle
Shiba Inu has been trading in a narrow range since Friday's drop to a low of $0.00002142. In the wake of the price drop, Shiba Inu has returned to trade below its daily SMA 50 at $0.0000245, raising the prospect of consolidation or range trading in the short term.
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The first indicator of strength would be a break above the daily SMA 50 ($0.0000245). In this case, if the Shiba Inu price breaks and closes above $0.0000263, it may signal that bulls are attempting a return. Shiba Inu could cross the $0.0000294 overhead barrier.
However, if the SHIB price falls below the current range support line at $0.0000227, Shiba Inu may retest the $0.0000214 low.