SHIB is at $0.00001407, just below resistance at $0.00001435; a break above could push it to $0.00001553, reversing bearish sentiment.
Shiba Inu (SHIB) has seen a significant drop in price over the past week, triggering bearish sentiment among traders. This has led to a wave of selling pressure in the market.
However, should SHIB recover, it could cause substantial losses for short traders who are betting against the altcoin.
The liquidation map shows a fascinating development: if Shiba Inu recovers the 10% losses it has sustained, it could trigger over $52 million worth of short liquidations. Short sellers have been betting on a decline, but if SHIB rebounds, these traders will face considerable losses.
As traders exit their short positions due to losses, the market will likely see a surge in buy orders, which can propel SHIB’s price upward. This scenario is beneficial for SHIB holders, especially if the altcoin manages to secure a recovery, thereby validating the bullish outlook for the token.
However, the broader market signals suggest some concerns. Active addresses for Shiba Inu have seen a decline of 36% over the last 48 hours. This indicates that investors may be losing hope in a quick recovery for the altcoin and are swiftly exiting their positions.
The decreasing number of active addresses reflects a lack of confidence in the altcoin’s short-term prospects. As more investors exit, the buying pressure necessary to trigger a recovery becomes harder to build.
At the time of writing, Shiba Inu’s price is $0.00001407, sitting just below the resistance level of $0.00001435. The altcoin has been facing mixed signals, with both bearish and bullish factors playing a role in its price action.
The key resistance level of $0.00001435 needs to be broken for a potential recovery.
If SHIB continues to hover within the consolidation range of $0.00001435 and $0.00001317, traders will remain safe from liquidation risks. This sideways movement will keep the altcoin within a neutral zone, avoiding drastic price changes in the immediate term.
However, if Shiba Inu’s price manages to break the resistance at $0.00001435 and flips it into support, SHIB could potentially climb back to $0.00001553. This would mark a 10% recovery, invalidating the current bearish sentiment and shifting the outlook to a more optimistic tone.
