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

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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.

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