Shiba Inu (SHIB), the second-largest meme coin in the crypto market, is currently encountering resistance in its attempt to reclaim its all-time high of $0.00008845. This challenge stems from significant supply walls and concentrated holdings by many addresses that create hurdles for the token’s price appreciation.
The broader cryptocurrency market has recently shown signs of strength, with Bitcoin reaching a new all-time high. This positive sentiment translated to massive surges for the rest of the market. Shiba Inu enjoyed a surge of over 250% in early March, and many saw this as an attempt to breach its all-time high. However, the meme coin fell before it could reach this target.
Shiba Inu is currently trading at $0.00002747. Although it shows a 4.04% decline over the last 24 hours, it is trading above its March low of $0.00002366. While SHIB is showing signs of recovery, the meme coin continues to face significant resistance levels that are impeding further progress. Data from IntoTheBlock reveals multiple supply walls that pose obstacles to the token’s climb to its all-time high and beyond.
Breaking Down the Supply Walls
These supply walls represent areas where investors previously bought a large number of SHIB tokens. The collective selling pressure from these addresses can hinder price increases as they may be incentivized to sell their holdings for a profit.
The most prominent supply wall sits between $0.000031 and $0.000036, where roughly 137,600 addresses hold a combined 20.96 trillion SHIB. This concentration of tokens has proven to be a significant hurdle, preventing SHIB from surpassing the $0.00003 mark since its drop last month.
Subsequent resistance levels exist at $0.000037-$0.000040 (7.54 trillion SHIB) and $0.000057-$0.000139 (29.71 trillion SHIB). Notably, the final wall boasts the largest volume, potentially presenting the most significant challenge for SHIB’s price advancement.
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Investor Sentiment Remains Positive Despite Resistance
While SHIB faces headwinds in the form of these supply walls, investor sentiment appears to be optimistic. CryptoQuant, an on-chain data analytics platform, shows a slight decrease in exchange reserves of SHIB over the past week, suggesting potentially lower selling pressure.
Shiba Inu’s path toward its all-time high and beyond is contingent on overcoming these supply walls. Investor sentiment seems to be leaning bullish, and analysts believe SHIB will soon surpass its all-time high. Successfully navigating these hurdles will be crucial for the meme coin’s future.
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