Shiba Inu’s performance throughout January has been a wild ride: the asset has steadily lost and gained tens of percent to its value, leaving some investors with heavy losses and others with significant profits. However, the token has reached the pivotal level it needs to break through in order to continue to advance.
According to SHIB’s daily chart, the token has reached the resistance level of the trendline formed almost six months ago. Unfortunately, the asset was unable to gain a foothold after breaking the 200-day moving average for the first time, but it then successfully returned above the resistance level during the market’s second upward move.
The trend we’re seeing today doesn’t give us enough information to determine the direction or momentum Shiba Inu will take on its journey. However, thanks to the decentralized and public nature of blockchains, we can clearly see where large investors’ funds are headed.
According to on-chain data, whales were selling large amounts of SHIB at the beginning of the rally, but the situation has changed now and whales are increasing their holdings, gradually accumulating tokens, which may have been one of the reasons behind the most recent price increase.
Shiba Inu has attempted at least three times to break through the local resistance level of the 200-day moving average, but the lack of buying power and funding in the market has led to reversals each time, making these breakout attempts worthless.
It is unclear whether the situation is any different today, but at the same time, the market is seeing strong inflows, which has not been the case for the sector as a whole since the FTX implosion.