Although Shiba Inu has recently displayed signs of life, on-chain data indicates a significant obstacle that could stop its momentum in its tracks. Following a breakout above the 50 EMA, which frequently indicates a possible change in market structure, SHIB is now getting close to a significant resistance zone that might serve as a significant trap for the meme coin. More than 11 trillion SHIB tokens are currently trading between $0.000012 and $0.000013 based on the most recent data.
SHIB was able to overcome this level, which was initially a major barrier but has since been broken. The next obstacle, though, is even more worrisome: an additional 15 trillion SHIB tokens held by almost 18,000 addresses are concentrated between $0.000013 and $0.000014.
There could be a lot of selling pressure because these in-the-money holders might be anxious to sell their tokens when prices reach breakeven. It is very difficult for SHIB to maintain a rally above this range because of this dynamic, which turns the $0.000013-$0.000014 range into a liquidity trap where any upward momentum could be instantly met with sharp resistance.
SHIB has displayed a positive price move above the 50 EMA on the daily chart along with a brief volume spike. There is not enough market conviction to drive the asset much higher, though, as evidenced by the generally muted trading volume. Furthermore SHIB is still well away from overbought conditions, as indicated by RSI levels of about 54.
This suggests that there is still room for rising prices, but the overhead pressure may cancel that out. In summary, while Shiba Inu’s recent price strength is a positive development, the large accumulation zones seen in the on-chain data indicate that there is still a significant amount of resistance to overcome. SHIB may be caught in this multi-trillion-token liquidity squeeze, which could result in consolidation or a reversal unless there is a notable influx of buying momentum into the market.
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