Shiba Inu (SHIB), the popular meme coin, 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 price failed to sustain upward movement, indicating that the altcoin may not be able to recover just yet. As market conditions continue to fluctuate, Shiba Inu could face further challenges in its attempts at recovery.

Shiba Inu Sees LTHs Panicking

Investor sentiment has taken a bearish turn, as evidenced by the rising Age Consumed metric. This metric tracks the movement of coins that have been held for an extended period of time. During a price decline, a spike in Age Consumed often indicates that long-term holders (LTHs) are selling their positions to offset losses. 

In the case of Shiba Inu, the increasing movement of HODLed coins suggests that investors are not confident in the short-term price recovery. As a result, the market’s outlook remains cautious, with LTHs likely contributing to the selling pressure. Additionally, the current shift in market sentiment reflects growing uncertainty among Shiba Inu holders.

The macro momentum of Shiba Inu is also showing signs of weakness. The MVRV Long/Short Difference indicator, which measures the profit levels of short-term holders (STHs) versus long-term holders, suggests that STHs are dominating in terms of profits.

As STHs remain in control, the market could experience continued volatility, with investors hesitant to buy into the token without confirmation of sustained price growth. With short-term holders more likely to liquidate their assets quickly, Shiba Inu faces increased risks of further price declines.

SHIB Price Breakout Could Be Reversed

Shiba Inu’s price is currently hovering at $0.00001276, just above the support level of $0.00001275. After a brief breakout in the last 48 hours, SHIB failed to maintain upward momentum and is now facing resistance. The market sentiment suggests that further price drops could be on the horizon, and the coin could potentially slide back into the long-standing downtrend.

If the downtrend persists, SHIB could dip below $0.00001141, extending the current bear market. This would confirm the continuation of the negative price action and delay any potential recovery. Investors should remain cautious and prepare for more uncertainty in the short term.

However, should Shiba Inu manage to rebound from the support level of $0.00001275, it could potentially rise toward $0.00001462, clearing a significant resistance barrier. 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.

Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including…

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