After a Prolonged Phase of Consolidation Marked by Investor Caution and Subdued Price Action, SHIB's Decisive Breakout Has Reignited Enthusiasm

After a prolonged phase of consolidation marked by investor caution and subdued price action, SHIB's decisive breakout has reignited enthusiasm

Shiba Inu (SHIB) price has surged with renewed vigor, benefitting from the positive market sentiment. As investors grew increasingly cautious and the crypto market experienced a prolonged period of consolidation, SHIB’s decisive breakout has brought back enthusiasm among both retail traders and institutional participants.

Shiba Inu is currently trading at $0.00001415. SHIB price today went up by 1.37% in the last 24 hours, while also registering a 21.42% trading volume increase to reach $313.13 million. For the last week, SHIB went up 16.21%, highlighting its ability to navigate the improving market conditions.

The activity increase shows that there is a general improvement of confidence towards the token, which places Shiba Inu among the top performers of mid-cap cryptocurrencies. Analysts say the momentum is due to a change of sentiment within the crypto sector, where appetite for risk is gradually being regained. However, while the latest performance of SHIB is optimistic, market analysts warn that sustainability will largely depend on breaking major technical resistance levels within the short term.

Why is it hard for Shiba Inu to reach $1?

While sentiment remains optimistic, the possibility of Shiba Inu hitting the highly touted threshold of $1 is a very tall order. Such a jump would require an almost total destruction of SHIB’s enormous supply.

With its existing supply of 589.5 trillion tokens, to achieve the valuation of $1 without increasing the market capitalization would mean burning 99.9987% of its supply down to 7.77 billion tokens.

If the monthly burn rate of SHIB continues, around 15.64 billion tokens were burned last March alone, the community would be more than 3,100 years from achieving a corresponding reduction. While technically possible, the impracticability of such a timeline moderates expectation.

Shiba Inu's price is affected by a technical factor

The cryptocurrency is facing a key resistance level as it continues to rally. According to on-chain analysis from IntoTheBlock, more than 22.7 trillion SHIB tokens, held by 49,000 addresses, are clustered between the price ranges of $0.00001293 and $0.000015.

Together, these so-called “out-of-the-money” holders form a potential sell wall of significant weight, with numerous owners likely seeking to break even after buying high.

The densest area of these tokens lies at around $0.000014, closely related to the price at which SHIB is currently trading at. In order to continue its upward trajectory, SHIB needs to break through this resistance with sufficient purchasing pressure.

Otherwise, the market may witness another halt or retracement, an occurrence that unfolded during its previous rally attempts. As the sessions progress, the capacity of SHIB to absorb this substantial supply surplus will be decisive in determining whether the breakout culminates in a lasting rally or merely a temporary surge.

News data source: kdj.com

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