Shiba Inu now confronts significant supply wall in its quest to reclaim December highs.
The cryptocurrency market is currently grappling with a bearish trend, leading to ongoing declines in asset prices.
Amid these challenging conditions, Shiba Inu (SHIB) has emerged as one of the most affected cryptocurrencies, plummeting over 37% from its peak in early December.
Resilience Above Key Price Levels
Despite the overall bearish sentiment, Shiba Inu has managed to maintain stability above the $0.00002 level.
However, it has struggled to break through this critical zone. On Christmas Day, SHIB faced formidable resistance in its attempt to reclaim the $0.000025 mark, highlighting the obstacles it faces in the current market.
Smaller Supply Wall Impeding Progress
As bearish pressures persist, data from IntoTheBlock reveals a significant sell wall that has acted as a barrier to
Shiba Inu’s upward momentum. Specifically, SHIB encounters two notable supply walls before reaching the sought-after $0.00003 level.
The first, although smaller, is still a concern, situated between $0.000023 and $0.000024.
In this range, 42,310 addresses have collectively purchased 60.44 trillion tokens, creating a substantial resistance point.
When SHIB attempted to breach the $0.000024 level on Christmas Day, this supply wall became apparent, resulting in a pullback that culminated in an over 8% decline by Boxing Day.
The Largest Sell Wall Deterring SHIB’s Ascent to $0.00003
Beyond the smaller supply wall, Shiba Inu faces intense resistance between the $0.000024 and $0.000030 brackets.
In this range, approximately 208,010 addresses hold 70.35 trillion SHIB, making it the largest sell wall the token has encountered.
Following its ascent to a six-month high of $0.00003343 on December 8, SHIB faced significant selling pressure from this wall.
Leading to a dramatic 15.30% drop the following day—the most significant intraday decline since the Terra network collapse in May 2022.
In previous attempts, SHIB met resistance at $0.00003045, triggering a 16.8% fall over three days, further emphasizing the challenges it faces in overcoming these barriers.
Future Projections Amidst Current Challenges
Despite the hurdles, several market analysts have set ambitious targets for Shiba Inu, anticipating potential rebounds in the broader market.
Some projections even suggest a yearly peak of $0.000045.
However, the likelihood of SHIB reaching these targets remains slim until it decisively breaks above the $0.00003 threshold.
Recent data from IntoTheBlock indicates that bears have been in control for the past few days, exacerbating selling pressure.
Specifically, on December 29, large whales sold over 92.7 billion SHIB tokens, and this figure increased to 133.98 billion by December 30.
Current Market Standing
As of the latest update, Shiba Inu is trading at approximately $0.00002123, reflecting a slight morning decline of 0.26%.
Notably, the asset has experienced a 21.19% drop throughout December, following a noteworthy 49.47% increase the previous month, which was largely influenced by Donald Trump’s victory in the presidential election.
Shiba Inu remains resilient above critical support levels, it faces significant challenges in overcoming supply walls that have impeded its recovery efforts amidst a bearish market landscape.
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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets
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