Shiba Inu Can Rally But Has Technical Challenges
A price drop below a crucial accumulation zone left almost 73% of SHIB at a loss.
If SHIB prices return to $0.000017, a historical sell level, holders may sell.
After a "Golden Cross" signal, SHIB might reach $0.0000144 but confronts resistance around the 50-day SMA.
Shiba Inu (SHIB) fell 0.1% Wednesday after losing a critical accumulation zone. On-chain and technical signs imply a temporary surge.
SHIB's on-chain stats indicate a purchase zone.
IntoTheBlock reports that roughly 73% of SHIB tokens are worth less after the meme currency dropped $0.000017, around which buyers bought 496.48 trillion SHIB.
This is SHIB's greatest accumulating zone, and a reclaim may either create important support for the token or lead to a drop if investors sell after breaking even.
Santiment's research reveals that inactive SHIB coins spiked on July 18 when their price hit $0.000017. On the same day, SHIB's exchange volumes spiked, signaling price volatility and probable sell pressure.
Despite the minor price fall, the August 5 market crisis didn't affect SHIB investors since net flows and inactive coins didn't increase.
SHIB's Weighted Sentiment is -0.7, and its 30-day Market Value to Realized Value (MVRV) Ratio is -11.9%, suggesting an average 11% loss for all investors in the previous 30 days.
With a substantial number of coins held at a loss, SHIB may still be in a purchase zone, according to on-chain statistics.
50-day SMA may limit SHIB's growth.
SHIB's 100-day SMA crossed above its 200-day SMA, forming a "Golden Cross". This move is typically seen as a sign of a fresh uptrend.
An early "Death Cross" by the 50-day SMA below the 100-day SMA on July 17 may prevent an upward rise. SHIB also confronts March 8 declining trendline resistance.
SHIB's next objective is the 38.2% Fibonacci retracement level, at $0.0000144. Any breach of $0.0000870 will invalidate the thesis and cause a major SHIB correction.
