Shiba Inu (SHIB) has experienced a 25% rebound from the recent market crash on August 5th, reaching $0.000014 on August 8th. However, on-chain data reveals a significant sell-wall of 5.83 million SHIB that could impede further recovery.
The surge in SHIB’s price can be attributed to various bullish catalysts, including ETF inflows, Ripple’s $125 million fine, and Russia’s decision to legalize cryptocurrency mining. These factors contributed to a 33% price jump in just three days. Despite this positive momentum, SHIB encountered strong resistance at the $0.000014 level, where a substantial volume of sell orders accumulated.
The presence of these sell orders is hindering the bullish sentiment, leading to a 4% correction in the last 24 hours. Additionally, the bearish outlook is evident in the on-chain market depth chart, with sell orders surpassing buy orders. At an average price of $0.000014, there are approximately 5.43 trillion SHIB in sell orders compared to 3.03 trillion SHIB in buy orders, indicating a negative difference of 2.4 trillion SHIB, equivalent to around $17 million.
This deficit in buying support suggests the potential for further price declines if the trend persists. However, technical indicators such as the Bollinger Bands and Relative Strength Index (RSI) suggest a possible bullish reversal. SHIB is currently trading near the lower Bollinger Band, indicating an oversold position that could prompt a bounce back. The RSI also hovers near the oversold region, hinting at potential upward movement.
If SHIB can maintain support at $0.000013 and buyers step in, the price could retest the $0.000015 resistance level. Breaking through this level could lead to further gains, with the next resistance point around $0.000018. On the other hand, failing to hold the $0.000013 support may result in a retest of the $0.000012 level, which has previously shown strong buying interest.
In conclusion, while technical indicators suggest the possibility of upward movement, SHIB’s ability to surpass the $0.000015 resistance will depend on broader market sentiment and any new bullish developments that counteract the existing sell pressure. If these conditions are met, SHIB could experience another price surge.