SHIB is facing severe tests, and key resistance levels may determine its future direction. After in-depth analysis of on-chain indicators, we found that there is a misleading pessimism among traders, which undoubtedly puts SHIB at greater risk of downside. Looking back over the past week, the price of Shiba Inu [SHIB] has fallen by 11.65%, and in the last 24 hours, its decline has reached 2.11%. This series of data reveals the market's lack of support for SHIB's price to rise.
If Shiba Inu fails to successfully cross the current resistance, its decline may continue. At this critical moment, every slight market change may become a turning point that determines the fate of SHIB, so investors and traders need to remain highly vigilant.
Shiba Inu's road to recovery is thorny
After experiencing the violent market fluctuations, Shiba Inu found a short-term support at the price of 0.00001602 and showed signs of recovery. However, the good times did not last long, and its upward path encountered a severe challenge from the strong resistance zone of 0.00001740. The resistance zone is like an insurmountable barrier, often accompanied by huge selling pressure, which in turn triggers a further decline in prices. At this moment, whether the market can overcome this difficulty has become the focus of our attention. If it fails, SHIB may return to 0.00001602, or even lower.
However, if this barrier can be successfully overcome, SHIB's future will be full of possibilities. The short-term goal is 0.00002169, while the long-term goal is even more ambitious, 0.00002945.
But the doubts have not dissipated: What are the on-chain indicators telling us? Is the trading activity a sign of a rising trend or a harbinger of a recession? Let us read AMBCrypto's in-depth analysis of SHIB's market behavior.
SHIB faces a firm bearish market
Currently, the market sentiment towards SHIB is generally bearish, and many long traders are facing the dilemma of liquidation. They had high expectations for price increases, but the reality did not go as expected. In addition, the data on open interest also revealed signs that sellers dominated the market, which further suppressed the price of SHIB.
According to statistics, more than $432,970 of long positions have been cleared in the market. This huge withdrawal of funds undoubtedly reflects that people's confidence in the upside potential of SHIB is gradually losing, and traders have suffered considerable losses as a result. At the same time, the trend of open interest also shows that the power of short selling is stronger, indicating that the price of SHIB may fall further.
Are traders accelerating the sell-off of SHIB?
According to data analysis by IntoTheBlock and AMBCrypto, the volume of large transactions involving Shiba Inu has dropped significantly, by 62.57%, to only $27.99 million. This data reveals that large investors are not actively buying, but are instead showing a cautious wait-and-see attitude.
Coupled with the pessimism mentioned above, traders are more willing to sell, which directly leads to the continuous decline of SHIB prices. If this trend cannot be effectively curbed, SHIB may face more severe tests. However, if the selling pressure can be alleviated, SHIB still has a chance to regain its upward trend and achieve better results.
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