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The broader crypto market is still struggling with the forces of the bears as most assets trade in the red. But Shiba Inu is making moves to strike a fundamental price despite the odds that could push it back.
The price of SHIB has finally hit the $0.000007 region though the meme protocol still has about 4 trillion in circulation. Will the circulating supply affect Shiba Inu from accomplishing further price growth?
How SHIB Circulating Supply Could Impact Its Price
The In/Out of the Money (IOM) indicator of IntoTheBlock offered an analysis of the current SHIB distribution as related to its price and token supply.
The indicator considers address-holding tokens in its analysis. It notes the average cost at which tokens were acquired and compares it with the current price of the coins.
If the current price of the token exceeds the average cost, the address is said to be ‘in the money.’ On the other hand, if the current price drops below the average cost, the address is ‘out of the money.’ Regarding Shiba Inu, the indicator identified several SHIB holders positioned at a +/- price different from the current level.
Such clusters of holders could represent potential selling pressure or purchasing power, depending on the price movement of the meme token. The implication could be that SHIB would experience more difficulties while trying to climb to the next price threshold of $0.000008.
Currently, about 15 trillion SHIN tokens are trading at a loss, implying that they were bought at a higher price than the current price level. This builds a wall of potential selling pressure on Shiba Inu.
For SHIB to surge to the $0.000008 region, it must overcome the wall. So, the token would need a remarkable boost of buying power to break across the resistance wall. If the price of SHIB tokens maintains an upward move, the coins held ‘out of the money’ could shift to become ‘in the money.’
Such a transition is quite responsive and could soften the selling pressure, helping to push the price further upward. However, a drop in the price of SHIB could propel more tokens to fall ‘out of the money,’ spiking the selling pressure on the meme coin.
SHIB Price Action
The price trend in the crypto market indicates that most assets plummeted in value over the past 24 hours. The overall market cap is currently at $1.07 trillion, showing a slight increase of 0.44% over the past single day.
At the time of writing, SHIB dipped by 1.45% over the past 24 hours trading at $0.000007012. Its market cap is $4.17 billion, with a 24-hour trading volume of $81 million.
Notably, Shiba Inu positively drove its value over the past 7 days. The meme coin surged by over 4.01% in its 7-day price action.
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