Shiba Inu (SHIB) Faces Potential Sales Pressure, Bitcoin’s Surge Might Propel It Forward

While the cryptocurrency market continues to grapple with fluctuations, Shiba Inu (SHIB) has come under scrutiny. This cryptocurrency, inspired by pop culture and dogs, is currently trading at $0.000007, with about four trillion SHIB tokens in circulation. 

Shiba Coin Review

IntoTheBlock’s “In/Out of the Money” (IOM) indicator provides a perspective on the current SHIB distribution. This indicator defines the average cost of tokens held at any address and compares it with the current price. 

If the current price is higher than the average cost, the address is considered “in profit”. Conversely, if the current price is below the average cost, the address is considered “at a loss”. There are currently clusters of SHIB holders at a +/- 15% price difference from the current level. These clusters represent potential sale pressures or buying power, depending on the price movement. 

Shiba Price Chart

However, SHIB’s journey to the next price threshold of $0.00008 may not be smooth. There are about 15 trillion SHIB tokens currently being traded at a loss. In other words, these tokens were purchased at a higher price than the current level, thus forming a wall of potential sale pressure. 

For SHIB to reach the $0.00008 level, it will need to overcome this wall, which would require a significant influx of buying power. Bitcoin surpassing $28,000 and heading towards $30,000 could provide this impetus for Shiba Inu. 

The IOM indicator is described as a powerful tool for understanding the potential trajectory of SHIB’s price performance. If the price continues to increase, SHIB tokens held at a loss could move into profit, potentially easing sale pressure and helping the price rise further. Conversely, if the price falls, more tokens may be held at a loss, potentially increasing sale pressure. 

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility risks and should conduct their transactions based on their own research.