Shiba Inu: What Chances Do They Have to Turn Things Around?

  • Shiba Inu’s daily price chart shows an upward trend as the memecoin has been trading in a resistance zone since June.

  • Liquidation levels above could trigger a “short squeeze” before reversing course in the second half of October.

Shiba Inu [SHIB] is trending up at the time of writing, but its trading volume has dropped by 4.4% in the previous 24 hours. At the same time, whale activity has also decreased – a sign that demand from large players is shrinking.

Biểu đồ giao dịch 1 ngày của Shiba Inu

Source: SHIB/USDT on TradingView

Bullish investors have rebounded strongly from the early October pullback as the fair value gap is tested. Trading volume has exceeded the August and September averages. The psychological resistance zone of $0.00002 is a big challenge for bulls.

This area has been a tough hurdle since June. RSI and market structure show bulls dominating, but OBV is less convincing. The lack of demand in October could delay attempts to break above the overhead resistance area.

Reduced volatility could help investors

Shiba Inu Santiment

Source: Santiment

The one-week volatility index turned around in late September but has been quiet since then. The decline in volatility is a sign of consolidation as in the first half of September, before the sharp rally.

The 90-day MVRV of the Shiba Inu is trending up, along with the price. This increases the potential for profit taking and selling pressure, but does not threaten the breakout opportunity.

Meanwhile, the average age of invested USD is on a steady upward trend at the time of writing, revealing that investments are stagnating and old coins are still lingering in their wallets.

Once this index starts to decline, it will be an early sign of a slowdown and could lead to a strong uptrend. This happened in February and March this year and could happen again.

Short liquidations are forming on SHIB price at the time of writing

Bản đồ nhiệt thanh lý Shiba Inu

Source: Coinglass

The 3-month liquidation heat map has revealed the $0.0197-0.0202 zone (1000SHIB so three decimal places removed) as an area of ​​interest. This zone could push Shiba Inu higher.

In fact, speculators seem willing to bet that 1000SHIB will be rejected again at $0.02. Their belief may fuel a short-term squeeze, but real demand is needed to sustain this memecoin's breakout.

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