After a 200% rally, Shiba Inu Dog Coin encounters opposition

Shiba Inu has become parabolic with an almost 200 percent gain this week, but it confronts a massive supply wall.

Over the last week, the Shiba Inu has seen a significant increase in popularity. However, SHIB now looks to have hit a huge supply hurdle, which might limit its upward momentum.

Shiba Inu Is Ready to Retrace His Steps

The price of Shiba Inu has skyrocketed in recent days, but the dog coin still has a long way to go.

Since Oct. 4, the so-called “Dogecoin killer” has increased by over 200 percent, hitting a peak of $0.000025. Many market players were taken aback by the unexpected bullish impetus, as SHIB had been flat for more than 100 days.

Shiba Inu has now piqued the interest of many cryptocurrency fans, according to statistics. Santiment, a behavior analytics platform, has identified “crowd excitement” as a key influence in recent price action. The number of SHIB-related remarks on social media networks increased by 70%, as did the product’s price.

Shiba Inu Social Volume
Source: Santiment

The increased buzz around Shiba Inu isn’t always a favorable indicator for its short-term price movement. When the price of SHIB rises and the public’s attention is drawn to it, a sharp correction is likely to follow.

Although the current social volume of Shiba Inu does not favor bulls, transaction history indicates that the asset is sitting on a solid support.

The In/Out of the Money Around Price (IOMAP) model from IntoTheBlock reveals that $0.000021 is a firm footing for the asset. Over 10,000 addresses have purchased over 630 billion SHIB at this price level in the past.

With such a large demand barrier in place, a decisive decline below this level may result in additional losses. Shiba Inu may fall below $0.000017 or perhaps $0.000015 in this scenario.

Shiba Inu Transaction History
Source: IntoTheBlock

The IOMAP cohorts also indicate that the most important supply barrier ahead of Shiba Inu is $0.000025, where around 500 addresses acquired more than 8 trillion SHIB. Holders at this price level may attempt to break even on their underwater holdings, thereby delaying the rise. To get to $0.000030, the meme currency has to close above $0.000025.

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