• SHIB Needs to reach $0.00002444 to Break Free From the downtrend channel.
  • Market Sentiment Remains Mixthepiterecent Price Surge.

Shiba Inu (SHIB) is attempting to claw back recent losses and propel itself towards $0.00002954. However, a key resistance level stands in its path, threatening to derail the current uptrend.

SHIB Struggles to Escape Downtrend Channel

Market analyst Ali Martinez identified a multi-month descending channel on the 4-hour timeframe that has been capping SHIB’s price since March. Several attempts to breach the upper trendline have been unsuccessful.

The recent market recovery has seen SHIB inch closer to this resistance level again. After closing with a 4.71% gain on May 13th, its highest intraday surge since May 3rd, SHIB is currently up 8.20% over the past 24 hours. This positions it as one of the top gainers among the leading 100 cryptocurrencies.

Crucial Resistance Awaits

Martinez’s analysis suggests that SHIB faces another significant hurdle at $0.00002444, aligning with the Fibonacci 0.382 level on the daily timeframe. Overcoming this obstacle would put SHIB above the descending channel, potentially triggering further gains.

DaInto The Block (ITB) indicates minimal resistance below this level. The only major hurdle is a supply wall held by 21,660 addresses, containing 7.58 trillion coins acquired at an average price of $0.000024.

Market Uncertainty Looms

Despite the recent decline in volatility, SHIB still grapples with a bear-dominated market. ITB data shows volatility dropping from a high of 232.58% on March 4th, when the coin reached its yearly high above $0.000045, to the current level of 75.55%.

Furthermore, whale activity reveals a slight edge for sellers. Over the past three days, 11th–13th, 44 whale addresses sold over 1% of the daily trading volume, while only 41 bought similar amounts.

Can SHIB Sustain the Rally?

To maintain the upward momentum, the coin requires a renewed influx of buyers. While a significant 269% surge in derivatives volume to $309 million within 24 hours is encouraging, the long/short ratio of 0.9654 on IntoTheBlock suggests a prevalence of short positions, indicating that many market participants anticipate a price correction.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.