Bulls and Bears Clash at Shiba Inu's $0.000012 Crossroads

Shiba Inu (SHIB) is currently facing critical market conditions as it trades near a key support level at $0.000012. On-chain data and price charts suggest that the token has been consolidating within a defined range since mid-August, with bulls needing to defend this critical support to prevent a potential 15% drop to weekly lows. According to data from Glassnode, SHIB has maintained a presence above the $0.000012 threshold, where a significant amount of the token has been acquired in recent months, forming a key demand zone. However, recent exchange net position change metrics show outflows from exchanges, a classic sign of accumulation activity by larger holders. If this support level fails, SHIB could face downward pressure toward $0.0000106, according to weekly trading range analysis [2].

Technical indicators such as the On-Balance Volume (OBV) and the Relative Strength Index (RSI) have also pointed to bearish sentiment in the market. The OBV has made a new low on weekly charts, indicating strength for sellers, while the RSI has failed to break past the 50-level, highlighting a lack of bullish momentum. The 1-day chart further reinforces this narrative, showing a descending trendline that suggests seller dominance. These metrics collectively suggest that the $0.000012 zone, while important, may not be a favorable entry point for traders [2].

On the other hand, recent on-chain analysis by analyst Joao Wedson offers a more constructive view for SHIB. He has highlighted several metrics, including the Realized Cap Impulse and the Net Unrealized Profit/Loss (NUPL) indicator, which suggest that SHIB is in an accumulation phase. The Realized Cap Impulse, which tracks speculative inflows into the network, is close to turning positive, signaling potential new capital entering the market. The NUPL, which indicates the proportion of SHIB holders sitting on gains or losses, shows that many still hold losses, which could lead to stronger buying pressure if sentiment shifts [3].

A key technical level highlighted by Wedson is the Alpha Price, a proprietary metric that rarely exceeds SHIB’s historical price levels. According to Wedson, this indicator suggests SHIB could see an upward move of at least 125% from current levels if it breaks through this threshold. The Alpha Price has historically aligned with major price moves, making it a significant signal for traders watching for a potential breakout. Memecoins, Wedson argues, often gain prominence in late-cycle phases, and SHIB could reemerge as a top performer if the speculative narrative resurges [3].

Despite these contrasting views, SHIB’s recent cross-chain developments may provide a catalyst for renewed interest. SHIB became the first memecoin to be listed on Folks Finance, a cross-chain decentralized finance protocol. This listing allows SHIB holders to participate in lending and borrowing activities across multiple blockchains, facilitated by Chainlink’s Cross-Chain Interoperability Protocol. This move expands SHIB’s utility and may attract new capital into the token, potentially providing support as it navigates the current price consolidation [1].

As SHIB remains in a state of uncertainty, market participants are closely watching the $0.000012 support level and on-chain metrics for signs of a potential turnaround. A sustained bullish breakout would require strong volume and price action, while a breakdown could trigger a retesting of lower levels. Investors are advised to approach the current market environment with caution, as the outcome will largely determine the near-term trajectory of SHIB’s price.

Source:

[1] Shiba Inu Token Now Eligible For Cross-Chain Lending (https://finance.yahoo.com/news/shiba-inu-token-now-eligible-213135721.html)

[2] Shiba Inu Price Prediction - All about THIS Risky Buying Opportunity (https://ambcrypto.com/shiba-inu-price-prediction-all-about-this-risky-buying-opportunity-for-traders/)

[3] Shiba Inu Price Prediction: Accumulation Phase Could Trigger Massive Breakout (https://cryptodnes.bg/en/shiba-inu-price-prediction-accumulation-phase-could-trigger-massive-breakout/)