Shiba Inu has been on quite a ride lately, jumping up by 65% this month. That’s impressive! But it’s not all smooth sailing. The coin is hitting some resistance, making it tough to keep climbing. Still, this shift in momentum gives SHIB a shot at breaking through an important resistance level.
One interesting point is the MVRV Long/Short Difference. It shows that long-term holders (LTHs) are finally back in the profit zone for the first time in four months. Before this, short-term holders (STHs) were the ones cashing in. Typically, that signals a bearish trend. STHs often sell when they’re up, which can create more selling pressure.
On the flip side, LTHs usually hold onto their assets for over a year. This behavior reduces selling pressure and helps stabilize prices. The return of LTH profitability could be a game changer for SHIB, supporting its price and potential future rallies.
Recently, most of Shiba Inu’s transaction volume came from trades at a loss. This bearish activity has overshadowed the profitable trades, raising some red flags for investors. However, things could change if SHIB’s price starts to consolidate and stabilize.
As losses shrink and profits begin to rise, we might see a shift toward more bullish transaction volume. When prices stabilize, investor confidence tends to grow, leading to more activity in profitable trades. This change in the overall momentum hints at a positive outlook for SHIB's recovery.
Currently, Shiba Inu is trading at $0.00002503, staying above its support level of $0.00002267. The coin is eyeing a break above the key resistance level of $0.00002976.
If it can consolidate between these levels, SHIB might build the momentum needed for another rally. Favorable market conditions could boost this chance, giving the coin a real opportunity to climb higher.
However, if it loses that critical support at $0.00002267, it could spell trouble. A drop to $0.00002093 would invalidate the bullish outlook and might lead to a dip in investor sentiment.