SHIB's Troubles: Analysis of Technical and On-chain Data

user avatar

by Giorgi Kostiuk

2 years ago

Technical and on-chain analyses of SHIB indicate a challenging position for the asset between key levels of support and resistance. The asset has faced difficulties in maintaining its recent upward momentum following a significant rally and is now in a squeezed position.

Technical Analysis

Technical indicators show that SHIB has encountered consolidation near its 50-day moving average following a strong rally that left its RSI somewhat overheated. If the price encounters additional downward pressure, the 100 EMA and current support zone at $0.000021 could serve as a buffer. Meanwhile, the $0.000026 level is accompanied by powerful on-chain resistance clusters, making breaking above it essential for regaining bullish momentum.

On-chain Data and Address Distribution

On-chain data reveals an intriguing address distribution. Between $0.000024 and $0.000028, approximately 126,000 addresses are out of the money, making it extremely difficult for SHIB to achieve a successful upward movement. On the other hand, the current support at $0.000021 corresponds to 81,000 addresses still in the money, placing traders in a high-risk zone where breaking either side could determine SHIB's future.

Forecast and Recommendations for Investors

SHIB may continue to consolidate and allow indicators like the RSI to cool down if it holds its support at $0.000021. This may serve as a starting point for a subsequent breakout attempt toward $0.000026 and higher. However, if support fails to hold, a decline toward $0.000018 might occur, negating a large portion of the gains from the recent rally. The data present a conflicting picture, offering both the potential for continued rise and obstacles due to waning momentum and resistance around $0.000026. Investors should closely monitor technical and on-chain events to predict SHIB's next move in this highly volatile market environment.

In the current challenging market environment, it is crucial for SHIB to monitor technical and on-chain movements to understand the asset's potential and prepare for possible changes in price dynamics.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Senate Banking Committee Democrats Request Hearing on Prediction Markets

Democratic members of the Senate Banking Committee request a public hearing to examine the growing issue of prediction markets and their regulatory implications.

user avatarFilippo Romano

Crypto Economic Activity Remains Strong Despite Market Downturn

Crypto economic activity has shown resilience despite a significant drop in market capitalization, indicating a shift in market dynamics.

user avatarEmily Carter

Visa's Research Highlights Trust as a Barrier to Stablecoin Adoption

Visa's research highlights that trust and fraud protection are essential for stablecoin adoption, with 36% of US respondents considering their use, especially with bank-level protections.

user avatarTomas Novak

Cardano's Onchain Governance Approves New Treasury Allocations

Cardano's governance system has approved a new round of treasury allocations aimed at infrastructure and ecosystem development.

user avatarKaterina Papadopoulou

Galaxy Invests $100 Million in Onchain Credit Infrastructure

Galaxy has invested $100 million in Sky Protocol's yield-bearing sUSDS, integrating it into its corporate treasury and allowing it as collateral for institutional trading.

user avatarMaya Lundqvist

Blockchain.com and NYSE Join Forces to Launch Tokenized Trading Platform

Blockchain.com and the New York Stock Exchange have signed an agreement to develop a platform for trading tokenized US stocks and ETFs.

user avatarLeo van der Veen

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.