Shiba Inu (SHIB) Bulls Face a Critical Test

Shiba Inu (SHIB), a cryptocurrency with a dog motif, is experiencing a price spike similar to the rest of the cryptocurrency market.

Shiba Inu (CRYPTO: SHIB) encountered resistance levels during Monday evening’s trading session.

Shiba Inu price action showed the meme coin had risen 10% during the past seven days. The price had also risen 5% during the past 24 hours. At last check, the SHIB price was $0.00001682.

Shiba Inu price reached lows of $0.00001266 on July 5. Since reaching those lows, the price had risen gradually and was in the green for six out of eight days.

However, massive holdings of SHIB showed the token still had its toughest test ahead.

Shiba Inu price faced a large obstacle, with 424.11 trillion SHIB, valued between $0.000017 and $0.000019, presenting a significant barrier to further price increases.

Data showed 30,730 addresses purchased the SHIB within this price range, at an average price of $0.000018. This range was close to where the SHIB price was trading hands on Monday evening.

Hence, a substantial resistance level could prevent any further gains in this range.

The large volume of SHIB holdings at this price point suggested many SHIB investors were likely looking to sell tokens to break even. This could, in turn, introduce selling pressure that dampened the upward rise.

Shiba Inu bulls needed to draw in buyers, such as those mentioned above, to alleviate selling pressure and drive the SHIB price past this key range if they wanted to break resistance.

However, to continue SHIB's upward trend, the bulls may face a real challenge in the days ahead as they attempt to conquer this substantial obstacle.

A price breakout might be triggered if SHIB holders within this resistance region opt to hold instead of sell, as it would diminish selling pressure.

If Shiba Inu bulls manage to break through the resistance at this range, traders should watch for it. Further increases may be possible if SHIB is able to break through the 424.11 trillion SHIB wall.

But if the resistance holds, we may see a price retreat, or SHIB may remain in its present trading range for a while longer.

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