Shiba Inu (SHIB) has been consolidating in a tight triangle pattern on its daily chart, a technical setup that often precedes a breakout or breakdown. However, on-chain data is raising concerns about the asset’s stability. The cryptocurrency’s critical support level, sitting between $0.000022 and $0.000023, appears to be losing its grip, as buying activity in this range wanes. This could potentially lead to a significant retracement if the support fails to hold up.

The $0.000022-$0.000023 zone, supported by roughly 33 trillion SHIB held by nearly 46% of addresses currently in the money, has long been a key area for the asset. It has provided some level of stability as many investors have been buying into SHIB around this price point. However, recent signs suggest that the buying pressure is starting to fade, while selling pressure is building in resistance zones above $0.000025. This shift in market dynamics could leave SHIB vulnerable to a downward move.

Support Levels and Potential Decline

If the critical support around $0.000022 breaks, the cryptocurrency could face a steep decline, potentially targeting the next support zones at $0.000018 and $0.000019. These levels are significant because they align with previous buying activity, meaning they could act as buffer zones if SHIB continues to lose momentum.

The growing resistance above $0.000025 complicates the outlook for Shiba Inu. A large portion of the market is currently “out-of-the-money” in this range, indicating that the selling pressure could be strong should SHIB attempt to break past this resistance. This group of addresses holding SHIB at higher levels may not hesitate to sell, which would intensify the downward pressure.

Chart Patterns and Breakout Prospects

At present, SHIB is nearing the apex of its triangle pattern, where price action typically tightens before a significant move in either direction. The future of SHIB will largely depend on the volume and sentiment of the broader market. If a significant volume surge occurs, SHIB may break to the upside, with resistance at $0.000028 being the key level to watch for a bullish breakout. This would ignite renewed buying momentum, potentially pushing the price toward higher levels.

Conversely, if selling pressure continues to increase and SHIB falls below the $0.000022 support, the price could experience further declines. The 200-day moving average, which lies around the $0.000018 mark, could provide additional support in this scenario. This trendline from the most recent rally could act as a safety net if the price drops significantly.

Key Factors to Watch

For Shiba Inu investors, the next few days are crucial. The asset’s direction will depend heavily on both market sentiment and the amount of buying or selling activity that emerges from the key price zones. A breakdown below the $0.000022 level could signal a deeper retracement, while a breakout above $0.000025 could revive bullish momentum.

As the market remains unpredictable, keeping an eye on these critical support and resistance levels is essential for anticipating SHIB’s next move. Whether it holds the $0.000022 support or breaks through the $0.000025 resistance will likely dictate the asset’s short-term trajectory.

Conclusion

Shiba Inu’s future course is currently uncertain, with key support levels showing signs of weakening. While SHIB remains in a consolidation pattern, the outcome of this phase could go either way. Traders and investors will need to remain vigilant and monitor these critical price levels to determine whether SHIB can recover and push higher or whether the asset is set for a retracement. The next few days will be pivotal for SHIB’s price action.