Shiba Inu‘s stellar returns from 2021 haven’t been synonymous with its 2022 performance. However, it is not all down to Altcoin, as a collective bear market has crippled most of the digital assets. However, over the past week, recovery has been observed for the ecosystem, despite CPI data suggesting rising U.S inflation.
Shiba Inu’s position remains 13th in the charts, with a market cap of $6.3 billion.
Shiba Inu Daily Time Frame
On 21st June, Shiba Inu registered a 31% rise, allowing the asset to eliminate another ‘zero’ from this price. Since then, the asset has remained above $0.00001 but continued on a sideways track. If the chart is closely observed, SHIB’s price movement has confirmed an inverted head and shoulder pattern at press time. A bullish pattern indicates that a possible break above $0.000012 could lead to a rapid rally for the token.
With the immediate support at $0.00009, the current immediate resistance is at $0.00001734. A successful move above the white pattern line(check chart) would increase the probability of a 70% push for the asset. Shiba Inu would quickly test the resistance mentioned above, as there were fewer hurdles between the ranges.
The current position between the 50-Simple Moving Average(blue line) and 50-Exponential Moving Average(Orange line) is also bullish once the price moves above both the indicators, the chances of a bullish rally increase.
The relative Strength Index or RSI also hinted toward rising buying pressure from the ecosystem.
On assessing all the addresses holding Shiba Inu, it was clear that most of them were present at a loss. However, on further analysis, it can be understood why $0.00009 was strong support According to the chart, the highest number of addresses had accumulated SHIB below $0.00009. In the same light, there is also less resistance between $0.0001 to $0.00021. Approximately 150k addresses are holding SHIB between those ranges, and that is relatively less when compared to the accumulation zone between $0.0002 to $0.00004.
Hence, it is fair to state that once Shiba Inu starts recovering in the charts, it will be able to move with strong bullish momentum, and incoming buying pressure will have little to no resistance in play.