Shiba Inu has been trading above a solid demand zone that bulls need to defend. However, the weekly price chart revealed that sellers may have the upper hand right now. 

Shiba Inu’s [SHIB] price has been consolidating above the key demand zone at $0.000012 since mid-August. In fact, a recent AMBCrypto report noted that whales have been accumulating SHIB too.

That’s not all though as the exchange net position change has been negative since 17 August.

Here, negative flows represent outflows from exchanges – A classic sign of accumulation.

The cost basis distribution heatmap is a visualization of the supply density of SHIB across price levels. Warmer colors represent a greater supply acquired at that cost. The $0.000012 area represented a key demand zone, since it was where a sizeable amount of Shiba Inu has been acquired in recent months.

Therefore, bulls have to defend this key support if they want to drive a rally in the coming weeks.

Can Shiba Inu’s price stay above $0.000012, or should traders expect a southbound move?

The weekly chart revealed that Shiba Inu has traded within a range (purple) from $0.0000106 to $0.000016. It has consolidated within a smaller range too, between $0.00012 and $0.000014. If the $0.000012 support fails, SHIB is likely to fall to its weekly range lows.

This is a possibility traders and investors should be prepared for. The OBV made a new low on the weekly charts, signaling seller strength. The RSI was unable to push past the neutral 50-level – Another sign of weakness from the bulls.

Finally, the 1-day chart did not show any strength from the market’s buyers. In fact, the descending trendline resistance (white) outlined seller dominance yet again.

While the $0.000012-area is key, according to the cost distribution heatmap, it may be a risky buying opportunity still.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion