Shiba Inu, one of the most popular dog-themed meme coins, is facing a significant challenge in crossing a major resistance level. This resistance level is crucial as it marks a key milestone towards reaching a new all-time high. Despite bullish indicators, the memecoin is struggling to surpass this barrier. Let’s delve into why Shiba Inu is finding it difficult to break through.
Analyzing the chart, we can see that the daily RSI for Shiba Inu is currently at 61.97 and trending downwards, indicating a decrease in bullish momentum. However, the Average Directional Index is on the rise, suggesting that the memecoin may be consolidating before making a strong move in the market. There is a divergence between the price movement and RSI, with the price increasing while RSI decreases. This indicates that Shiba Inu may have been overbought by the community, leading to two possible scenarios – a potential downturn or a period of consolidation until the RSI aligns with the price movement.
Currently trading at $0.00003021, Shiba Inu faced rejection from a major resistance level at fib level 0.618, priced at $0.00003429. This zone is intersected by a trendline dating back to the 2021 bull run, further solidifying it as a significant resistance point.
In terms of momentum, Shiba Inu has experienced a 5.50% decrease in price from the previous day, with trading volume witnessing a substantial decline of 53.56%. Data from IntoTheBlock reveals that 72% of SHIB investors are in profit, while 19% are in loss and 9% are at breakeven. Over 120k wallets have purchased a total of 37.27 trillion Shiba Inu tokens at the current price.
The total value locked in Shibarium has increased from $5.57 million to $5.82 million, while the SHIB burn rate has surged by 208.51% in the last 24 hours. This increase in burn rate signifies a rise in transactions, which bodes well for future growth. Additionally, the upcoming launch of two new projects – TREAT and SHIFU – is expected to bolster the Shiba ecosystem and drive further adoption.
With ongoing token burn reducing the supply in the market and the introduction of new projects attracting more investors, Shiba Inu is poised for potential growth. As the price stabilizes after a period of consolidation, there is a strong possibility of breaking past the current resistance level towards a new all-time high. The community’s active engagement in transactions is likely to propel Shiba Inu to achieve a new ATH before the year concludes.