SHIB has been holding above the important price point of $0.00000507 from mid-February through early June. This makes it almost five months that have gone by without even a single close below it. Every time the price dipped near that line, the bulls were there to support the price.
Over time, the bulls lost their strength. SHIB’s price is now changing hands at $0.00000454, which is more than 10 percent below that old floor, and it appears there was no real battle on the way down.
The current price structure
The price level of $0.00000507 became a real level at the first point, as every dip toward it during the months of February and May was successfully bought back within a candle or two. It was the same level followed by the same response and was even repeated for nearly four months. This was not just luck but it was more of what the traders were settling on for a price. This is the typical kind of agreement that takes place after the level gets tested multiple times to mean something.
Eventually, in early June, the price closed under it and continued its downtrend.
The recent candles have marked a new local low somewhere between $0.0000044 and $0.0000045. Dashed line is indicating the current trading price, exactly on that point with the The old floor at $0.00000507 which is now built up above resistance.
A steep break on high volume is usually observed when the forced sellers get stopped out. A quiet break on normal volume is just the market participants that were involved in buying at these levels disappearing. This chart is the second version and this is perhaps the far more alarming way for a floor to fail.
The crucial resistance that market participants should keep an eye
The $0.00001007 level represents the top end of last year’s range that was tested in October. This is the kind of mark that usually remains visible on a chart as a long-range marker regardless of how many months after the price has moved well away from it, valuable for context on the fact of how far this downtrend has made the move but less useful as a near-term target considering the spread involved.
That doesn’t automatically take away from the immediate wall of resistance, which in fact is located more closely in the orange zone. This range is from roughly $0.00000620 to $0.00000700. Price tested that resistance zone back in early May, and since then, price has gone through a correction of nearly 27 percent from it. Back in early may of that year, multiple distinct wicks were made on that exact same price ceiling. Three or four distinct rejections in the same area are a wall that has been formed over months and not a single failed wick, and structures like that don’t break down just simply because price has drifted elsewhere for a while.
What are the important levels for the price
Nothing is defending the current level of $0.00000454 right now. No level sits between here and no matter where the next bid shows up. According to the latest data as per cryptoquant, the metric of Exchange reserves has seen a rise to roughly 80.5 trillion SHIB, with a total of over 959 billion SHIB moving onto exchanges in the latest period, which shows an inflow that came in right as the five-month floor broke. Coins on exchanges are sitting much closer to a sale than coins that are present in the cold storage, which in turn removes one bullish argument that could otherwise apply here.
No matter if that inflow corresponds to the starting point of sustained selling pressure or it could be just a one-time transfer that is working its way through, the chart cannot confirm this. The confirmed metric is the timing: reserves were actually expanding as the breakdown took place rather than falling. The price point of a $0.00000507 floor underwent three to four months of periodic tests to demonstrate its credibility. If there is any new level that is formed below it, then it will be requiring the similar kind of time period and testing before it can be considered a trusted point.
