Shiba Inu (Shib) has seen a significant drop in prices over the past week, causing bearish feelings among traders. This has caused a wave of sales pressure in the market.
However, if Shiv recovers, it could cause a huge loss to short story traders betting on Altcoin.
Shiba Inu traders should be careful
The liquidation map shows an attractive development. ShibaINU recovers its lasting 10% losses, which could result in a short liquidation worth $52 million. Short sellers bet on a decline, but when Shiv rebounds, these traders face substantial losses.
When a trader finishes a short position due to loss, the market is likely to see a surge in purchase orders, allowing Shiv’s price to rise. This scenario is beneficial for SHIB holders, especially when Altcoin can ensure recovery and thereby validate the bullish prospects of the token.
However, broader market signals suggest some concerns. Shiba Inu’s active addresses saw a 36% decrease over the last 48 hours. This shows that investors have lost hope for Altcoin’s quick recovery and are quickly leaving their position.
The decline in the number of active addresses reflects a lack of confidence in Altcoin’s short-term outlook. As more investors come out, it becomes more difficult to build the necessary purchase pressure to trigger a recovery.
SHIB prices should violate resistance
At the time of writing, the Shiba Inu priced at $0.00001407 and sits just below resistance level 0.00001435. Altcoin faces mixed signals, with both bearish and bullish factors playing a role in its price behavior.
For a potential recovery, the main resistance level of $0.00001435 must be broken.
Traders will be safe and secure from liquidation risk if SHIB continues to hover within the combined range of $0.00001435 and $0.00001317. This lateral movement keeps the Altcoin within the neutral zone and avoids any dramatic price changes in the near future.
However, if Shiba Inu’s price defeats resistance for $0.00001435 and gets involved in support, Shib could potentially return to $0.00001553. This marks a 10% recovery, negating current bearish feelings and shifting the outlook to a more optimistic tone.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always conduct your own research and consult with an expert before making a financial decision. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
