- Shiba Inu bulls flipped the mid-range level to support and have performed well since then.
- The meme coin might not yet be ready for a rally beyond the local lower highs.
Shiba Inu [SHIB] saw an old whale wallet sell all its holdings at a considerable profit. The meme coin sector was performing well, but Shiba Inu was unable to keep pace with the fastest gainers.
That was because it was in a consolidation phase that reached back to mid-April. The price was yet to break out past the local resistance zone, but the bulls had embarked on another attempt. Will they succeed?
The range highs were under threat
Source: SHIB/USDT on TradingView
The range (purple) reached from $0.00002 to $0.0000282. The mid-range mark (dotted white) is at $0.0000244.
Over the past two months, Shiba Inu has respected this level and repeatedly tested it as both support and resistance.
At press time, the price was trying to break past the range highs. A week ago, the price managed to flip the mid-range level to support, once again highlighting the importance of the range formation.
Like the price, the OBV was also beneath a resistance level that stretched back to mid-May. The OBV also looked ready to climb, but it was too soon to tell at press time.
In the event of a breakout, the retracement phase’s lower highs set at $0.0000295 and $0.0000328 (dotted white) will be the next resistance levels to watch.
Why a breakout might be unlikely
Source: Hyblock
The technical analysis showed strong bullish momentum and buying pressure, but the liquidation heatmap outlined a lack of significant liquidity clusters above the $0.00003 resistance zone.
This meant that the current rally had accomplished its goal of collecting liquidity near the range highs and might retrace soon.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
More time spent within the range and an extended consolidation phase could build liquidity pockets near $0.000035 or higher, which might become a bullish target once the market sentiment shifts.
Such a rally might not be in store for Shiba Inu, and traders need to be prepared for a price dip.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
