The price of Shiba Inu recovered by 25% following Monday’s market crash, reaching $0.000014 on August 8. However, on-chain data shows that a sell wall of 5.83 million SHIBs threatens to halt the recovery phase.
Shiba Inu’s 25 percent price increase stops at $0.000014
Shiba Inu (SHIB) has shown resilience in the face of recent market turmoil, recovering 25% following the significant market crash on August 5.
After hitting a low of $0.000011, SHIB rose to $0.000014 by August 8, driven by a combination of bullish catalysts including ETF inflows, a $125 million fine for Ripple, and Russia’s decision to legalize cryptocurrency mining. However, as SHIB approached the $0.000014 resistance, the bullish momentum began to fade.
SHIB’s recent price surge can be attributed to these catalysts that created optimism across the crypto market. Shiba Inu benefited from this industry-wide rally, with its price increasing by nearly 33% in just three days, from the low on August 5 to the high on August 8.
The price chart shows that after this steep rise, SHIB encountered a strong resistance level at around $0.000014, where a significant volume of sell orders began to accumulate.
Remaining sell orders slow down the upward momentum
Despite the initial bullish sentiment, the high number of existing sell orders that has increased since Monday’s market crash appears to be negating the positive momentum. Over the past 24 hours, SHIB has seen a 4% correction, pulling back from its recent high of $0.000014. This correction occurred as SHIB failed to break the resistance level, coinciding with a broader market decline led by mega-cap assets that hit resistance points during the rally.
The order books of exchanges show that the bears, who were in control just a few days ago, still have a significant volume of sell orders, hindering SHIB’s rise above $0.000015.
The on-chain market depth chart for Shiba Inu (SHIB) suggests a bearish forecast, with sell orders outpacing buy orders. At an average price of $0.000014, there are about 5.43 trillion SHIB in sell orders compared to 3.03 trillion SHIB in buy orders, resulting in a negative difference of 2.4 trillion SHIB, or about $17 million.
This decline in demand indicates a lack of strong buying support, which, if the trend continues, could lead to further price declines.
Shiba Inu Price Prediction: Breaking $0.00015 Could Lead to Further Gains
The Bollinger Bands on the price chart indicate that SHIB is currently trading near the lower band, suggesting that it is in an oversold position, which could be a sign of a possible recovery. The Relative Strength Index (RSI) also suggests a possible bullish reversal as it fluctuates near the oversold region.
If SHIB can hold the support at $0.000013 and buyers step in to cushion the selling pressure, the price could retest the resistance level at $0.000015. A successful breakout of this level could open the doors for further gains, with the next resistance point located around $0.000018.
However, if the $0.000013 support fails to hold, SHIB could retest the $0.000012 level, where there was previously strong buying interest.
In summary, while technical indicators suggest that there is more upside possible, SHIB’s ability to break the $0.000015 resistance will likely depend on the overall market sentiment and whether any new bullish news emerges to counteract the existing selling pressure. If these conditions are met, SHIB could see further upside in its price action.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial loss.
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