The price of Shiba Inu has risen 25% since the market crashed on Monday, reaching $0.000014 on August 8. However, on-chain data shows that the sale of 5.83 million SHIB tokens threatens to halt the recovery phase.
Shiba Inu price increase by 25% stopped at $0.000014
The Shiba Inu (SHIB) breed has shown resilience in the recent market turmoil, recovering 25% from a significant market crash on August 5.
After a low of $0.000011, SHIB surged to $0.000014 on August 8, driven by a combination of bullish catalysts including ETF inflows, a $125 million fine on Ripple, and Russia’s decision to legalize crypto mining. However, as SHIB approached resistance at $0.000014, the bullish momentum began to wane.
The recent rise in SHIB price can be traced back to these catalysts, which have fueled optimism in the broader crypto market. Shiba Inu, benefiting from this sector-wide rally, saw its price rise nearly 33% in just three days, from a low on August 5 to a high on August 8.
The price chart shows that after this sharp rise, SHIB encountered a strong resistance level around $0.000014, where a significant volume of sell orders began to accumulate.
Residual sell orders slow bullish momentum
Despite the initial bullish sentiment, the high frequency of existing sell orders that increased after Monday’s market crash appears to be eroding the positive momentum. SHIB has shown a 4% correction over the past 24 hours, retreating from its recent high of $0.000014. This correction occurred as SHIB failed to break above resistance, coinciding with a broader market retreat caused by large-cap assets hitting resistance points during the rally.
Exchange order books show that the bears who were in control just a few days ago are still holding a significant volume of sell orders, preventing SHIB from rising above $0.000015.
The on-line market depth chart for Shiba Inu (SHIB) points to a bearish outlook, with sell orders outpacing buy orders. At an average price of $0.000014, about 5.43 trillion SHIB are in sell orders compared to 3.03 trillion SHIB in buy orders, leaving a negative difference of 2.4 trillion SHIB or approximately $17 million.
This drop in demand indicates a lack of strong support from buyers, which could lead to further price declines if this trend continues.
Shiba Inu Price Forecast: Exceeding $0.00015 Could Lead to More Growth
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 signal of a potential bounce. The Relative Strength Index (RSI) is also hinting at a possible bullish reversal as it is hovering near the oversold area.
If SHIB can hold support at $0.000013 and buyers step in to absorb the selling pressure, the price could retest the $0.000015 resistance level. A successful breakout of this level could open the door for further gains, with the next resistance point around $0.000018.
However, failure to hold support at $0.000013 could see SHIB retest the $0.000012 level, where strong buying interest has been seen previously.
In conclusion, while technical indicators point to further gains, SHIB’s ability to break the $0.000015 resistance will likely depend on broader market sentiment and whether there is any new bullish news that counters the existing selling pressure. If these conditions are met, SHIB could see another leg up in its price action.
