Shiba Inu (SHIB) appeared to be on the verge of a significant price surge recently, with a brief spike in momentum as the cryptocurrency market gained traction. For a moment, it seemed that the token might eliminate a zero from its price, reigniting optimism among traders. However, this optimism proved to be short-lived, as selling pressure quickly escalated, halting the rally before it could gain any substantial traction. Despite the initial rise, SHIB remains stuck in a larger downtrend, continuing to struggle beneath its long-term moving averages.
Market Pressure Prevents Sustainable Growth
Despite an initial recovery from recent lows, SHIB’s price continues to face strong resistance. The recent price action indicates a bounce rather than a true breakout, with selling pressure spiking whenever SHIB begins to rise. This has been a recurring theme as liquidity floods the market whenever any upward momentum emerges, with swing traders, short-term bots, and long-term holders all contributing to the resistance. The result is a halt to SHIB’s progress, preventing it from breaking free from its range and making it difficult to envision a move into a higher price zone in the short term.
Additionally, there is a substantial supply of SHIB tokens sitting on exchanges, ready to be sold as soon as the price begins to climb. This massive supply serves as a significant barrier, weighing down any attempt at a rally. As a result, the market structure remains heavily skewed in favor of sellers, with no clear indication of when or if the price will be able to break through its resistance.
Long-Term Prospects for SHIB’s Price Action
While the short-term outlook remains challenging for SHIB, there is still potential for a shift in the longer term. If exchange balances begin to drop significantly and SHIB can break through key moving averages, the narrative of zero removal could become a reality.
However, this would require a change in market sentiment, with less selling pressure from traders as the price moves up. Until this shift occurs, it’s unlikely that SHIB will be able to sustain any meaningful rally. For now, SHIB remains trapped in its downtrend, with the possibility of further volatility in the near future.