Shiba Inu has struggled to break through a critical resistance level, facing rejection before even testing the threshold. Recent price action indicates that the 26-day Exponential Moving Average (EMA) remains a major resistance, preventing further upward movement.
The 468 trillion SHIB level, once a key profitability zone for investors, has become a formidable barrier. On-chain data previously showed that many SHIB holders were seeing gains at this level. However, the latest rejection suggests buyers could not reclaim this territory, reinforcing downward pressure on the token.
This sentiment is further underscored by a staggering 44,431% decline in large-holder netflows recorded this month, dropping from an inflow of 3.5 trillion SHIB on February 7 to an outflow of 792.81 billion SHIB on February 8. Such outflows indicate that major holders are reducing their positions, contributing to the bearish momentum.
SHIB Holders Face Losses as Resistance Strengthens
According to the Global In/Out of the Money metric, many SHIB investors are currently holding at a loss. This indicates weakening bullish sentiment, as traders fail to push prices beyond resistance. Lacking substantial buying pressure, SHIB may struggle to regain lost ground, potentially leading to extended consolidation or further declines.
Technical indicators further support this bearish outlook. SHIB has repeatedly failed to break above key moving averages, particularly the 26 EMA. This persistent rejection signals that downward momentum remains dominant. If the token continues on this trajectory, it could drop to $0.000015 or lower, particularly if current support at $0.000016 fails to hold.
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Potential for a Bullish Breakout?
Despite these challenges, a breakout above the 26 EMA could shift market sentiment, triggering renewed bullish interest. However, given current market conditions, this scenario appears unlikely without a surge in demand. For the asset to regain strength, it must reclaim key resistance levels and establish solid support.
Investors and traders should closely monitor the 468 trillion SHIB level, which has become a pivotal resistance point. Successfully breaking through this barrier could spark renewed momentum, while continued failures may reinforce bearish dominance.
The asset’s struggle to regain its previous profitability underscores persistent market hesitation and investor caution. While many anticipate a potential surge, sustained upward momentum remains uncertain. Without significant buying pressure, the token may continue facing downward pressure.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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