Shiba Inu (SHIB) is approaching critical resistance
Things are not going well for the popular memcoin Shiba Inu (SHIB). The cryptocurrency is now approaching an important resistance, from which it could roll back to $0.000010
Let's look into what's going on with Shiba Inu (SHIB) and what levels traders and investors should be watching for right now.
Trouble is not letting up for Shiba Inu
According to Glassnode, SHIB's network value to transaction (NVT) ratio spiked on September 14 and is still high.
This ratio tracks the relationship between market price (or market capitalization) and transaction volume. Low values indicate that the asset is undervalued and may hint at a possible price increase, while high values signal that it is overvalued and may fall in value.
The In/Out of Money Around Price (IOMAP) indicator also points to a possible fall in Shiba Inu. It shows price levels where holders have concentrated large amounts of the cryptocurrency.
According to IntoTheBlock, SHIB faces strong resistance at $0.000014, where 10,780 addresses hold nearly 45 trillion tokens. This is more than the number of SHIBs between $0.000011 and $0.000013.
This distribution of tokens signals that supply may exceed demand. Then the price of memcoin could fall to $0.000010.
SHIB forecast: to break out of the “triangle”
At the time of writing this analysis, SHIB is trading at $0.000013, having lost more than 4% in the last 24 hours. The next important resistance awaits the memcoin at $0.000014.
Back in June, Shiba Inu has been moving within a descending triangle pattern. This pattern, formed by a descending upper trendline and horizontal support, usually indicates that sellers are in control and the price is likely to decline.
In case of a fall below the base of the trianglea memcoin risks facing a ~20% correction, which would lower its price to $0.000010.
Nevertheless, if SHIB breaks out of the triangle, the bearish thesis could be refuted. In that case, the price will get a chance to rise towards $0.000016.
