Resistance Cluster Analysis for Shiba Inu

There is a substantial resistance cluster for Shiba Inu at the $0.000013 price level, where investors hold 551 trillion SHIB at a loss. This extreme concentration of supply raises the possibility that many addresses are trying to break even or turn a profit at this point, which could lead to a potential price reversal.

On-chain data indicates that 551 trillion SHIB are stored in 166,400 addresses between $0.000014 and $0.000019. Therefore, if SHIB attempts to move higher, a significant amount of selling pressure will likely arise. Before another breakout attempt, SHIB may see a correction if buyers cannot withstand the selling pressure.

The In/Out of the Money metric shows that these addresses paid more for SHIB than it is currently worth. Many of these holders might attempt to sell their tokens to recoup their investment if the price hits $0.000014, which would further strengthen the resistance barrier.

With lower highs putting pressure on a critical support zone, SHIB has been forming a descending triangle pattern on the price chart. SHIB needs to break above the $0.000013 level to gain bullish traction, even though recent price action indicates a slight recovery.

The token has struggled to gain momentum. If SHIB breaks out above this resistance zone, it may move toward $0.000016 or higher, potentially leading to a stronger rally. However, the most likely scenario could be a retracement back to support levels around $0.000012 or lower if SHIB cannot break through.

SHIB’s response at this level should be closely monitored by investors due to the sizeable resistance cluster at $0.000013. When volume rises alongside a price push, it may signal robust buying pressure that can overcome resistance. Otherwise, SHIB may face a prolonged consolidation phase due to another pullback.

A stronger bullish move could be facilitated by breaking through this significant resistance, although long-term sentiment remains mixed. Investors are currently watching to see if SHIB has enough traction to surpass the 551 trillion token barrier.