Enormous SHIB volume present at around current price, here’s how it might affect price performance
As the cryptocurrency market continues to grapple with volatility, Shiba Inu (SHIB) is under the spotlight. The meme-inspired cryptocurrency is currently trading at $0.000007, with approximately four trillion SHIB tokens floating around at this price level.
IntoTheBlock’s “In/Out of the Money” (IOM) indicator provides a perspective on the current SHIB distribution. According to the indicator, for any address-holding tokens, it identifies the average cost at which those tokens were acquired and compares it with the current price. If the current price is greater than the average cost, the address is considered to be “in the money.” Conversely, if the current price is below the average cost, the address is “out of the money.”
At present, there are clusters of SHIB holders situated at a +/- 15% price difference from the current level. These clusters represent potential selling pressure or buying power, depending on price movement.
The journey to the next price threshold of $0.00008, however, might not be smooth sailing for SHIB. There are approximately 15 trillion SHIB tokens currently trading at a loss. In other words, these tokens were purchased at a higher price than the current level, thereby creating a wall of potential selling pressure. For SHIB to ascend to the $0.00008 mark, it will need to overcome this wall, which would require a significant inflow of buying power.
The IOM indicator is a powerful tool in understanding the potential trajectory of SHIB’s price performance. If the price continues to increase, SHIB tokens held “out of the money” may transition to being “in the money,” which could alleviate selling pressure and aid in driving the price up further. Conversely, if the price drops, more tokens may fall “out of the money,” potentially increasing the selling pressure.
Source: https://u.today/4-trillion-shib-left-until-shiba-inu-reaches-fundamental-price-level