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With on-chain data indicating that 41 trillion SHIB tokens are now back in the green, Shiba Inu has witnessed a significant increase in profitability among its holders. In spite of this, the asset is trailing other recovering cryptocurrencies and finding it difficult to gain traction in the larger market. Despite gains, the price action of SHIB is still weak.
The most recent price stabilization is what caused the recent increase in profitability. This change does not however always portend a breakout for SHIB. There is still bearish pressure present because the token is still trapped beneath a descending trendline. For long-term holders the profitability increase is encouraging, but it has not yet turned into an uptrend. The price of SHIB is currently circling a critical threshold after failing to break important resistance levels.
The asset continues to face significant obstacles from the trendlines resistance, which restricts any notable upward movements. Concerns are being raised by investors because Shiba Inu is not reflecting the recovery of the larger cryptocurrency market. SHIB is still under selling pressure, but other well-known cryptocurrencies such as Bitcoin and Ethereum have recovered more forcefully.
Tomiwabold OlajideSHIB needs to first break above the descending trendline, which is serving as a crucial resistance level, in order to acquire bullish momentum. Further consolidation or even a retest of lower support levels is still a possibility if the token is unable to accomplish this. Although the profit rebound of 41 trillion SHIB is positive, it does not ensure a long-term recovery.
Arman ShirinyanShiba Inu's future price action is still uncertain until it can overcome significant resistance levels and continue on the upward trajectory of the larger market. A clear move above the trendline would be one of the main signals of a bullish reversal.
Dan Burgin
Vladislav Sopov