Shiba Inu (SHIB) continues to face significant hurdles in its efforts to reclaim the $0.00003 price point. Despite showing resilience above the $0.00002 region, the cryptocurrency is grappling with a series of sell walls that have hindered its recovery since early December.

In the past few weeks, SHIB has experienced a dramatic price drop, falling more than 37% from its early December peak. The broader crypto market has struggled with a bearish phase, and Shiba Inu has been no exception. While it has managed to hold steady above the $0.00002 support level, it has encountered substantial resistance each time it attempts to push higher.

Smaller Supply Wall and Its Impact

One of the key challenges facing Shiba Inu is a sell wall between $0.000023 and $0.000024. According to data from IntoTheBlock, this level represents a significant area of resistance. Within this price range, 42,310 addresses purchased over 60 trillion SHIB tokens. SHIB encountered this resistance on Christmas Day when it tried to break through the $0.000024 mark. The rejection at this level led to an 8% pullback by Boxing Day (December 26), reinforcing the strength of this supply wall.

The Larger Sell Wall Blocking $0.00003

However, the most formidable obstacle for Shiba Inu lies just beyond this smaller sell wall. Between $0.000024 and $0.00003, SHIB faces the largest sell wall it has encountered. Data shows that 208,010 addresses hold a massive 70.35 trillion SHIB tokens within this price range. The sheer volume of tokens at these levels has prevented SHIB from making any significant headway towards $0.00003.

This sell wall played a key role in Shiba Inu’s downfall after it reached a six-month high of $0.00003343 on December 8. After facing this intense resistance, SHIB plummeted by 15.30% the following day. This marked its largest intraday decline since the Terra implosion in May 2022. Similar price struggles occurred earlier in the month when SHIB was unable to break past $0.00003045, leading to a 16.8% drop over a three-day period.

Bearish Market Pressure and Whale Activity

The ongoing bearish pressure on Shiba Inu is also being exacerbated by large-scale selling. On December 29, whales sold over 92.7 billion SHIB tokens, and by December 30, that number increased to 133.98 billion tokens. The dominance of these bears in the market has contributed to a continual downward push for SHIB, preventing any meaningful recovery.

SHIB’s Future Prospects

Despite the current struggles, some analysts remain hopeful about Shiba Inu’s long-term potential. Many expect the token to reach a peak of $0.000045 once the broader crypto market stabilizes. However, this ambitious goal seems unlikely to materialize unless SHIB can successfully break and hold above the critical $0.00003 resistance zone.

At present, SHIB is trading at $0.000021066, showing a modest 0.26% drop this morning. The token has lost 21.19% in December, following a 49.47% rise in November, which was spurred by the unexpected political events surrounding Donald Trump’s victory in the presidential election.

In conclusion, Shiba Inu’s journey towards reclaiming $0.00003 is far from straightforward. The large supply walls between $0.000023 and $0.00003 continue to cap its upward movement, while whales continue to exert selling pressure on the token. Without a decisive breakout above these levels, SHIB may find it difficult to achieve any substantial gains in the near future. Investors will need to closely monitor these resistance zones and the broader market trends for any signs of a reversal.