Shiba Inu price has sliced through significant support levels during its recent flash crash and is currently consolidating. Going forward, investors can expect SHIB to see a relief rally emerging off the immediate foothold.
Shiba Inu price coils up
Shiba Inu price has been on a non-stop downtrend since its all-time high on October 28, 2021. The downswing has shattered several support levels and is currently testing the 9-hour demand zone, extending from $0.0000158 to $0.0000193.
Investors can expect Shiba Inu price to stay above this foothold and see a breakout from the current consolidation, favoring the bulls. The resulting uptrend is likely to be capped at the 200-day Simple Moving Average (SMA) at $0.0000251.
Although unlikely, this 25% upswing could extend to 38% as it retests the weekly resistance barrier at $0.0000283, roughly coinciding with the 50-day SMA at $0.0000297.
Supporting a bounce from the said demand zone for Shiba Inu price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that roughly 101,740 addresses that purchased 469,850 billion SHIB tokens at an average price of $0.0000170 are present below.
Therefore, any minor selling pressure will be absorbed by these investors wanting to accumulate more.
While things are looking up for Shiba Inu price, the number of large transactions worth $100,000 or more seems to be on a downtrend over the past three months. Such transfers have almost halved from 219 to 104, indicating that these investors are not interested in SHIB at the current price levels.
A daily candlestick close below the $0.0000158 to $0.0000193 demand zone will create a lower low and put a large number of holders in this area, “Out of the Money.” If these investors decide to offload their holdings, it will create massive selling pressure, invalidating the bullish thesis for SHIB. This development could see Shiba Inu price fill the fair value gap and retest the eight-decimal support at $0.00000787.
