Shiba Inu Coin price is at a critical juncture in its price action history as only two major resistance levels stand in its way to reclaim previous yearly highs. Meanwhile, the SHIB burn rate has surged for the second time this week, indicating that activity on the Shibarium network is ramping up. This news coincides with the announcement of Shibarium’s first games launching soon, sparking excitement within the Shiba Inu community. Despite this positive news, traders opened more Short positions over the last 24 hours, with over $7 billion worth of tokens wallowing in losses. Will these SHIB investors recover and emerge from underwater?

Hope for $7B SHIB as Traders Push For Shiba Inu Coin Price Breakout

Data from Santiment shows an increase in Shiba Inu 24-hour active addresses since the Aug. 18 low, establishing a two-week high on Aug. 20. On Aug. 21, the price began dropping as active addresses continued increasing. This was a bullish divergence, which resulted in price increases. Upon the breakout, whale activity increased (large red spikes), which indicates they were potentially selling their bags as price retraced shortly after. 

As whales continue to book profit, traders are taking advantage of the price correction to open more long positions. According to the Coinglass Liquidation Map, there is a total of $2.35 million cumulative Long liquidation Leverage, almost twice as much as Shorts. This imbalance suggests bullish sentiment dominates the SHIB market because traders anticipate prices to rise higher.

Diving into IntoTheBlock data, we immediately see a huge group of investors wallowing in mud. The IOMAP data reveals that over 106,000 addresses holding over $7 billion in SHIB tokens are underwater. Most were bought at an average price of $0.000017, 21% away from the current price.

The amount of SHIB stuck at this price level represents over 85% of all tokens in circulation. This means that if the Shiba Inu Coin price reaches and breaks above this price level, there would be little holding it back from rising higher. It would quickly rise back to yearly highs.

Obstacles to Break for SHIB to Hit $0.00001700

The Shiba Inu Coin price chart shows a potential bullish breakout from a consolidation phase. The price is still range-bound, but it has recently moved above a crucial resistance level of $0.00001404, which signals potential upward momentum.

SHIB price is currently testing resistance at $0.00001476. A clean break above this level could pave the way for further upside to the next target, around $0.00001700, where the price may face stronger selling pressure.

Additionally, the Bollinger Bands and Relative Strength Index indicators suggest increased volatility and the potential for continued upward movement and further gains.

A sustained breakout above $0.00001476 with strong volume would signal the start of a bullish reversal. If the breakout is confirmed, the long-term target could be as high as $0.00002000, contingent on broader market conditions. However, as the RSI approaches overbought levels, it could indicate the need for caution or partial profit-taking.

Shiba Inu price prediction shows if bears prevail, the asset may fall back to $0.00001300 and potentially lower, invalidating the bullish thesis. The previous resistance level of the Shiba Inu coin price of 0.00001404 is now the current support level. 

The post Shiba Inu Coin Price Forecasts 21% Gains, But $7B SHIB Could Ruin It appeared first on CoinGape.

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