Shiba Inu has been facing a persistent downtrend for the past month, keeping the popular meme coin from making significant gains. While there has been a noticeable uptick in new investor activity, this has not been enough to counteract the ongoing price decline.
Shiba Inu’s struggle to break free from this slump highlights the challenges it faces in regaining momentum.
Shiba Inu Faces Selling
Active addresses with profits are currently making up over 25% of Shiba Inu’s total addresses. These holders, who have seen gains, are more likely to cash out, leading to increased selling pressure on the price. This concentration of profitable addresses could weigh heavily on the price if it continues to dominate.
If investor behavior shifts toward holding rather than selling, Shiba Inu could see relief from its ongoing price decline.
Shiba Inu Active Addresses By Profitability. Source: IntoTheBlock
Shiba Inu’s overall macro momentum is improving slightly as new addresses have started to rise again after a month of decline. This increase in new investors signifies a renewed interest in the meme coin, which could bring a fresh influx of capital into the asset.
This uptick in new investors could help counterbalance the selling pressure caused by the existing profit-taking addresses. If this trend of increased interest continues, SHIB may be able to build the momentum it needs to push past the current resistance levels.
Shiba Inu New Addresses. Source: IntoTheBlock SHIB Price Needs To Push Upwards
At the time of writing, Shiba Inu’s price stands at $0.00001127. The coin attempted to break out earlier this week but failed, resulting in a false breakout. The price remains under pressure as SHIB attempts to navigate a resistance level at $0.00001141. This has made it vulnerable to further declines, with the potential for a drop to $0.00001059.
Currently, SHIB is under the resistance of $0.00001141. If it fails to break through this level and confirm it as support, it is likely to continue its downtrend, testing lower levels. A further slide to $0.00001059 would only add to the bearish sentiment surrounding the coin.
Shiba Inu Price Analysis. Source: TradingView
If, however, Shiba Inu manages to flip the resistance of $0.00001141 into support, it could create a solid base for the altcoin. With the help of new investors, SHIB could break the $0.00001188 level and potentially escape its downtrend. This would invalidate the bearish thesis, marking a shift toward a more positive outlook for the coin.
