One of the most famous dog themed meme coin Shiba Inu is finding it hard to cross a major resistance. Once it is passed, the memecoin will be one step away from creating a new all time high. Even though the indicators are looking bullish, why SHIB is unable to cross this line, let’s try to find out.
What Does the Chart Say?
The daily chart for Shiba Inu shows that RSI is standing at 61.97 and it is in a downtrend. This implies the bullish strength is reducing over time. However the Average Directional Index is on the rise. There are chances that the memecoin is taking a rest and gathering energy for a powerful market momentum. Comparing the price movement for the last few days with the movement of RSI, we can see a diversion. The price was moving up when the RSI was moving down. This shows the memecoin has been overbought by the community. In such a case there are two scenarios : either the asset takes a downturn or stays in a consolidation zone till it matches the RSI movement.
SHIB is currently trading at $0.00003021 after facing rejection from a major resistance at fib level 0.618 at $0.00003429. On a weekly chart, this zone is crossed by a trendline since the 2021 bull run that also plays as a resistance here.
The Momentum
The memecoin is down by 5.50% from its last day price and the trading volume is witnessing a huge reduction. It is down by 53.56%. Data from IntoTheBlock shows that 72% of the SHIB investors are still in profit with 19% in loss and 9% at the break even price. At this price over 120k wallets have purchased a total of 37.27 trillion Shiba Inu tokens.
The total value locked in Shibarium has increased from $5.57 million on December 2 to $5.82 million today. The SHIB burn rate is up by 208.51% as compared to the last 24 hours means the transactions are rising which is a good sign for growth. As SHIB will have more transactions, the burn rate will increase.
A major boosting news for the SHIB army is the upcoming launch of two new projects – TREAT and SHIFU. These two projects are supposed to support the shiba ecosystem and push for more adoption.
What To Expect?
With continuous token burn, the supply is getting removed from the market, supporting the price. Less supply, more demand increases the price of any asset. Also the launch of two new projects will definitely encourage more investors to join the ecosystem. As the price cools off after staying in a confined zone for sometime, there are high chances it will break past the resistance to fight the final one which is its current all time high. As the community keeps pushing the price with their engagement in transactions, there are high chances we see Shiba Inu marking a new ATH before the year end.
