Shiba Inu Navigates Crucial Support, Resistance Amidst Market Turmoil

Shiba Inu (SHIB) has returned to its two-month consolidation range after geopolitical tensions caused a brief breakout. Key support and resistance levels identified through on-chain data and price action include: support between $0.000024 and $0.000025, held by 25,560 addresses with profitable SHIB purchases; and resistance between $0.000028 and $0.000029, held by 22,480 addresses with loss-making SHIB purchases. The 4-hour price chart aligns with these levels, showing support at the 20EMA ($0.0000245) and resistance below $0.000029.

Shiba Inu (SHIB) Navigates Key Support and Resistance Levels Amidst Market Uncertainties

Shiba Inu (SHIB), a popular meme cryptocurrency, has recently regained its two-month consolidation range after a brief dip triggered by geopolitical tensions. As the market stabilizes, analysts at Finbold have identified crucial support and resistance levels to monitor in SHIB's on-chain data and price chart this week.

On-Chain Analysis Reveals Profitable Holders

Over two-thirds of Shiba Inu's circulating supply is currently in profit, indicating that a significant portion of holders purchased the token at lower prices. This suggests that key support and resistance levels could emerge around areas of high-volume purchasing.

IntoTheBlock's on-chain data reveals that 25,560 addresses hold 31.35 trillion SHIB at a profit, acquired between $0.000024 and $0.000025. This range establishes a strong support level. Conversely, 22,480 addresses hold 20.65 trillion SHIB at a loss, acquired between $0.000028 and $0.000029, forming a resistance level.

Technical Analysis Provides Additional Insights

The 4-hour price chart for SHIB corroborates the on-chain analysis, highlighting similar support and resistance levels. The 20EMA (20-period exponential moving average) provides support at $0.0000245, while the previous price action indicates resistance below $0.000029.

The Relative Strength Index (RSI) for this time frame indicates a bullish strong momentum for SHIB, with a reading of 66.88. This suggests that the meme coin could soon test its key resistance and potentially breach the psychological level of $0.000030.

Trading Risks and Considerations

Despite the positive short-term outlook, investors should exercise caution when allocating capital to SHIB. The token recently traded as low as $0.000018, highlighting the vulnerability of the support level at $0.000020.

SHIB's long-term momentum remains uncertain, particularly amidst the emergence of new Solana (SOL) meme coins that have captured traders' attention. Investors should carefully consider these risks before making significant investments.

Conclusion

Shiba Inu (SHIB) presents key support and resistance levels to watch this week, as identified by both on-chain data and technical analysis. While the short-term outlook appears favorable, investors should proceed with caution and monitor market developments closely. The ongoing geopolitical uncertainties and the potential impact of emerging competitors could influence SHIB's trajectory in the coming weeks and months.