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Shiba Inu (SHIB), a dog-themed cryptocurrency, is hovering around a key price point amid the current market uncertainty. Cryptocurrency markets have seen significant declines this week, with millions of dollars wiped out in crypto liquidations.
The new year got off to a strong start, with Bitcoin regaining the $100,000 level, but it struggled to maintain momentum and Bitcoin fell to its lowest level of the year. Shiba Inu also failed to escape from the bearish momentum, dropping for three days to a low of $0.00002 on January 8th.
Shiba Inu started to rebound in Friday’s session and continued into Saturday, reaching an intraday high of $0.00002216. At the time of writing, SHIB was up 1.53% in the past 24 hours to $0.00002183, but down 11.12% in the past 7 days.
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The RSI indicator is below the midpoint of the daily chart, suggesting that the bears have a slight advantage. Still, Shiba Inu continues to consolidate or trade in a range between $0.00002519 and $0.0000189, moving averages between 50 and 200. Given the current market uncertainty, the question is on many people’s minds: where will the next Shiba Inu trend be?
Key support levels are highlighted
According to on-chain data, if the current market uncertainty persists, a significant range of 532 trillion SHIB tokens held could serve as the next major support level for the meme coin.
According to data from IntoTheBlock, 532.61 trillion SHIB was purchased by 133,600 addresses at an average price of $0.000016, ranging from $0.000014 to $0.000019. We expect to see increased buying activity at this price point as the 133,600 addresses that were previously purchased at this price point are likely to provide support.
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Large holdings suggest that holders in this range are unlikely to sell unless the SHIB price falls significantly below this range. Therefore, there is less selling pressure from holders trying to break even on their positions.
Just below SHIB’s current price of $0.0000218, a relatively small support zone exists between $0.000019 and $0.000021, with 18.2 trillion SHIB purchased by 20,000 addresses. This intermediate support level could provide some cushion in the event of a price decline, but it may not be as strong as the 532 trillion SHIB range.
