Despite facing resistance levels from earlier in the year, Shiba Inu (SHIB) witnessed heightened on-chain activity recently. The Shibarium Total Value Locked (TVL) soared to a record high, while its Layer-2 solution achieved a significant transaction milestone.
Is SHIB Poised for a Period of Stability?
Examining SHIB’s daily performance reveals a prevailing bullish trend. The support at $0.0000266, established on December 3rd, has remained intact without any daily closures below it. However, the Money Flow Index (MFI) dipped from nearly 80 in early December to 61 at the current juncture.
While momentum remained favorable, diminishing capital inflow and buying pressure signaled a waning trend. The breach of the $0.0000295 support level emphasized a short-term bearish sentiment.
Notably, the $0.0000295 level has served as a crucial resistance point since April, which was overrun in late November but has now been revisited due to recent declines in SHIB’s value.
Between June and November, the $0.00002 price region, marked by a red box, underwent multiple tests before experiencing a breakout. SHIB consolidated below this range in October before embarking on a significant upward trajectory.
Looking ahead, traders and investors must brace for potential market fluctuations in the upcoming weeks. The $0.00003-$0.000037 range has historically posed strong resistance since March, indicating a possible standoff with sellers in this segment.
Signs of Potential Price Upsurge Due to Imbalanced Orders
Noteworthy limit sell orders were documented from $0.000032 to $0.000035, suggesting a hurdle for price escalation within this bracket coinciding with March’s price behavior.
An imbalance in order placement indicated a scarcity of sell orders within a 10% proximity of the current price. This scenario could present a short-term buying prospect for SHIB, potentially propelling it towards the $0.00003 resistance level.
Recent data depicted a balanced mix of buying and selling pressures in the market over the past few hours.
Disclaimer: The opinions expressed in this content are personal viewpoints and should not be considered as financial, trading, or investment advice.