The key value can hinder the Shiba Inu’s potential for a rally

• Almost 73% of SHIB is held in loss after its price fell below a key accumulation zone.
• SHIB holders could exit their holdings if its price returns to the $0.000017 level, a historical level with high selling pressure.
• SHIB could rise to $0.0000144 after posting a “Golden Cross” signal, but is facing major resistance around the 50-day SMA.

Shiba Inu ( SHIB ) fell 0.1% on Wednesday after losing a key accumulation area. Meanwhile, its chain and technical indicators suggest the potential for a short rally.

SHIB values ​​in the chain suggest that it is still in the buy zone

According to data from IntoTheBlock, nearly 73% of SHIB tokens are held at a loss after the meme coin lost support at $0.000017, around which investors purchased 496.48 trillion SHIB.

This is SHIB’s biggest accumulation area, and a claim of this level could help establish critical support for the token or lead to a decline if investors decide to exit holdings after the breakeven point.

SHIB Global In/Out of the Money

This is highlighted in Santiment’s data, which shows an increase in the movement of SHIB coins that have been dormant for the past year on July 18, when their price reached the threshold of $0.000017. SHIB FX flows saw a similar increase on the same day, confirming high volatility and potential selling pressure around the price.

Meanwhile, despite the slight drop in prices, the August 5 market crash did not have much of an effect on SHIB investors, as net flows and latent coins in circulation did not see the major increases typical during such market declines.

SHIB’s weighted sentiment fell to -0.7 and its 30-day market-to-realized value (MVRV) ratio is -11.9%, indicating all SHIB investors over the past 30 days with an average loss of 11%.

SHIB values ​​in the chain

The on-chain data above suggests that SHIB may still be in a buy zone, especially with the large number of coins held in loss.

The 50-day SMA could prevent SHIB’s potential uptrend

SHIB posted a “Golden Cross” after the 100-day Simple Moving Average (SMA) crossed above the 200-day SMA. Such a move is often interpreted as confirmation of a new uptrend.

However, a previous “Death Cross” move by crossing the 50-day SMA below the 100-day SMA on July 17 could serve as resistance for an upward move. SHIB is also facing resistance from a March 8 downtrend line.

SHIB/USDT Daily Chart

Therefore, the next main target for SHIB is the 38.2% Fibonacci retracement level, which is around $0.0000144. A breach of $0.0000870 will invalidate the thesis and send SHIB into a massive correction.

This analysis is subject to Bitcoin price movement as meme coins often mimic its price.