Shiba Inu (SHIB) is currently poised for a potential 20% price surge, driven by a surge in its burn rate, increased network activity, and growing bullish sentiment among traders. However, a significant hurdle lies in the form of over $7 billion worth of SHIB tokens held by investors at a loss.
A Bullish Outlook
Several factors are contributing to the positive outlook for SHIB. The recent spike in the burn rate, driven by increased activity on the Shibarium network, indicates growing interest and engagement within the Shiba Inu ecosystem. Additionally, the upcoming launch of the first Shibarium games has generated excitement among the community.
Technical analysis also supports a bullish case for SHIB. The increase in active addresses and the dominance of long positions over short positions suggest that traders are optimistic about the token’s future.
The $7 Billion Hurdle
Despite the positive indicators, a significant challenge remains for SHIB. Over 85% of all SHIB tokens in circulation are held by investors who purchased them at a higher price than the current market rate. This represents a total of over $7 billion worth of SHIB tokens held at a loss.
If SHIB’s price were to rise by 21%, it would break above the average purchase price of these underwater tokens. This could trigger a wave of selling as investors attempt to recover their losses, potentially limiting the upside potential of the rally.
Key Resistance Levels and Potential Targets
To achieve a 21% rally, SHIB must overcome several key resistance levels. The first hurdle lies at $0.00001476. If SHIB can break above this level, it could pave the way for a move towards $0.00001700. However, strong selling pressure is expected at this level due to the large number of underwater tokens.
If SHIB successfully breaks through both resistance levels, the next target could be as high as $0.00002000. However, this would require sustained bullish momentum and favorable market conditions.
Conclusion
While the outlook for SHIB is currently positive, the presence of over $7 billion worth of underwater tokens presents a significant challenge. If SHIB can overcome this hurdle, a 21% rally is possible. However, investors should exercise caution and be prepared for potential volatility.
