- Shiba Inu price faces a stiff supply zone, extending from $0.0000293 to $0.0000326, halting the uptrend.
- If SHIB shatters this barrier, a 25% uptrend could emerge but failure could lead to a 24% retracement.
- A run-up could see the meme coin collect liquidity above $0.0000392.
Shiba Inu price has seen impressive gains over the past week that face the threat of getting undone. The run-up is currently facing a massive hurdle that could make or break the meme coin.
Shiba Inu price faces a decisive moment
Shiba Inu price rose a whopping 75% over the past week as it broke out of a nearly two-week consolidation range. This uptrend was a ripple effect of the bullish momentum emanating from Bitcoin.
As impressive as this run-up was, Shiba Inu price is currently facing a supply zone, extending from $0.0000293 to $0.0000326. Investors can expect SHIB to consolidate around this area and probably retest the weekly support level at $0.0000283. If Shiba Inu price manages to stay above this level, there is a good chance the rally will continue.
SHIB/USDT 1-day chart
Supporting the possibility of an extension of the rally for Shiba Inu price is the recent uptick in daily active addresses from 5,841 to 10,770 over the past four days. This 84% hike in addresses indicates that investors are interested in SHIB at the current price levels.
SHIB DAA
Adding a tailwind to the potential bullish outlook is the recent growth in the number of large transactions worth $100,000 or more. Such transfers serve as a proxy for institutional investment interest and have increased by 56% from 488 to 761 over the last month, suggesting a bullish outlook.
SHIB large transactions
On the other hand, if SHIB slices through $0.0000283, it will trigger a steep descent to stable support levels at $0.0000233. A breakdown of this barrier will invalidate the bullish thesis and suggest a retest of the demand zone, extending from $0.0000158 to $0.0000193. Here, buyers will have another chance at a bull rally.