Shiba Inu (SHIB) Price Prediction: Will the Meme Coin Breakout of Its Downtrend?

Shiba Inu (SHIB), the popular meme coin, has been struggling to break out of a downtrend that has persisted for the past three months.

Shiba Inu (SHIB) price has been struggling to break out of a downtrend that has persisted for the past three months. Despite recent efforts to regain momentum, SHIB’s attempt at recovery seems to be facing difficulties as the altcoin failed to sustain upward movement.

This lack of recovery could be attributed to LTHs dumping their coins, suggesting a lack of confidence in the short-term price outlook.

Shiba Inu LTHs Are Panicking

As evident by the rising Age Consumed metric, investor sentiment is shifting towards a bearish note. This metric usually keeps track of coins that have been untouched for an extended period. During a price drop, a sudden spike in Age Consumed indicates that LTHs are selling their coins to average down or offset losses.

In the case of Shiba Inu, the increasing movement of coins that have been HODLed for a long time suggests that investors are not optimistic about the token’s ability to bounce back quickly. As a result, LTHs are likely contributing to the selling pressure, impacting the market’s outlook negatively.

Furthermore, the current shift in market sentiment showcases the growing uncertainty among Shiba Inu holders. As the macro momentum of the token also seems to be weakening, STHs might be liquidating their assets more rapidly.

The MVRV Long/Short Difference indicator, which compares the profit levels of STHs and LTHs, suggests that STHs are currently dominating in terms of profitability.

This indicates that short-term profit takers are more prevalent, suggesting an imbalance in market participants’ behavior. As STHs prefer to liquidate their assets quickly, they could be putting more pressure on the token price to decrease further.

Shiba Inu Price Could Extend Downtrend

Shiba Inu’s price trades at $0.00001276, slightly above the support level of $0.00001275. After a brief attempt to breakout in the last 48 hours, SHIB failed to maintain upward momentum and encountered resistance.

This lack of recovery could lead to further price drops as LTHs are dumping their coins, indicating a lack of confidence in the short-term price outlook.

If the downtrend continues, SHIB could drop below $0.00001141, extending the current bear market and reaching the next support level. This move would confirm the continuation of the negative price action and delay any potential recovery.

However, if Shiba Inu manages to rebound from the support level of $0.00001275 and clear the resistance at $0.00001462, it could continue rising. A break above this level would invalidate the bearish outlook and signal the start of a more substantial recovery for SHIB, allowing it to regain some of its lost value.