 ▲ Shiba Inu (SHIB) |
Shiba Inu (SHIB) has lost upward momentum after hitting the key resistance wall at $0.0000066, and with large whale transactions also slowing, the token continues to move sideways within a narrow range.
According to cryptocurrency outlet The Crypto Basic on February 20 (local time), Shiba Inu has remained trapped below $0.0000066 in recent days, failing to find a meaningful breakout. The bullish run that saw SHIB surpass $0.000007 on February 15 and surge to $0.0000072 was short-lived. Following a sharp correction, the price fell back to around $0.0000062, while the former support level at $0.0000066 has now turned into strong resistance, capping further gains.
On-chain indicators show a positive sign as exchange reserves declined from 82 trillion SHIB to 81.47 trillion, suggesting investors are moving assets to cold wallets. While this typically reduces selling pressure, the current SHIB market requires strong buying demand beyond a mere reduction in supply. Although whale activity has been observed, including a massive withdrawal of 15 billion SHIB from the WazirX exchange, these large holders appear to be opting for a holding strategy rather than active trading, limiting the influx of new buying pressure.
Technical indicators also reflect the cautious market sentiment. The Relative Strength Index remains neutral, while momentum in the Moving Average Convergence Divergence indicator is gradually fading. Notably, trading volume over the past 24 hours declined 4.74% to $103 million, signaling a sharp drop in market participation. Experts warn that without strong buying support, the price could fall to the $0.0000055 support level and, in a worst-case scenario, retest this month’s low of $0.0000050.
Major ecosystem developments, such as the launch of the “Shib Owes You (SOU)” NFT aimed at compensating Shibarium victims and the potential introduction of a Shiba Inu-related ETF by T. Rowe Price, have not been sufficient to halt the current price decline. As these developments have failed to translate into tangible price gains, market disappointment has grown, adding further downward pressure. Shiba Inu is currently struggling to stabilize around $0.00000625 amid uncertainty over market direction.
Ultimately, for Shiba Inu to break out of its downtrend and reenter a bullish phase, it must decisively reclaim the $0.0000065 level accompanied by expanded trading volume. Until a strong catalyst or broader market momentum emerges, the current range-bound movement is likely to persist. Investors are closely monitoring whale activity and the timing of a breakout above key resistance levels while focusing on risk management.
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