Since mid-August, the price of Shiba Inu (SHIB) has been in a sharp decline, hitting noticeably lower lows in the past three days. The short-term downturn has brought SHIB to a crossroads.
However, it appears that the price of Shiba Inu (SHIB) has found support around the $0.00000675 level, which aligns with the 50% retracement level or midpoint of the three-day demand zone between $0.00000694 and $0.00000655.
SHIB Price Trend Chart, Source: TradingView.
Historically, when asset prices fluctuate significantly below the midpoint of a fixed range, the trend tends to continue. Therefore, it is crucial for SHIB to stay above $0.00000675 or hold the fixed range as support.
While a correction is critical, there is still a higher probability of downside movement. The Relative Strength Index (RSI) remains below 50, and the Awesome Oscillator (AO) indicator is in negative territory. Thus, the price of SHIB may continue to decline towards the $0.00000654 level, breaking the demand zone and signaling a bearish breakthrough.
SHIB/USDT 1-Day Chart, Source: TradingView.
On the contrary, if the demand zone holds as support, SHIB's price could use it as a potential starting point for a recovery bounce. This move could propel SHIB higher into the supply zone between $0.00000786 and $0.00000837. A decisive three-day candlestick closing price above the midpoint of the support zone at $0.00000815 would confirm an upward price trend.
Currently, there are significant supply barriers preventing SHIB from realizing its upside potential. According to IntoTheBlock's Global In/Out of the Money (GIOM) model, two major ranges exist between $0.000008 and $0.000014, followed by $0.00001400 to $0.00001900.
Shiba Inu GIOM Model, Source: IntoTheBlock.
Currently, a large number of investors are concentrated in these ranges, including traders who previously purchased SHIB near those price levels. Approximately 514,140 addresses hold a total of nearly 721.23 trillion Shiba Inu tokens, providing support to the SHIB price.