Key Takeaways
Shiba Inu has been trading above a solid demand zone that bulls need to defend. However, the weekly price chart revealed that sellers may have the upper hand right now.
Shiba Inu’s [SHIB] price has been consolidating above the key demand zone at $0.000012 since mid-August. In fact, a recent AMBCrypto report noted that whales have been accumulating SHIB too.
Source: Glassnode
That’s not all though as the exchange net position change has been negative since 17 August.
Here, negative flows represent outflows from exchanges – A classic sign of accumulation.
Source: Glassnode
The cost basis distribution heatmap is a visualization of the supply density of SHIB across price levels. Warmer colors represent a greater supply acquired at that cost. The $0.000012 area represented a key demand zone, since it was where a sizeable amount of Shiba Inu has been acquired in recent months.
Therefore, bulls have to defend this key support if they want to drive a rally in the coming weeks.
Can Shiba Inu’s price stay above $0.000012, or should traders expect a southbound move?
Shiba Inu likely to drop 15% to weekly range lows
Source: SHIB/USDT on TradingView
The weekly chart revealed that Shiba Inu has traded within a range (purple) from $0.0000106 to $0.000016. It has consolidated within a smaller range too, between $0.00012 and $0.000014. If the $0.000012 support fails, SHIB is likely to fall to its weekly range lows.
This is a possibility traders and investors should be prepared for. The OBV made a new low on the weekly charts, signaling seller strength. The RSI was unable to push past the neutral 50-level – Another sign of weakness from the bulls.
Source: SHIB/USDT on TradingView
Finally, the 1-day chart did not show any strength from the market’s buyers. In fact, the descending trendline resistance (white) outlined seller dominance yet again.
While the $0.000012-area is key, according to the cost distribution heatmap, it may be a risky buying opportunity still.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
