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The latest trends in the Shiba Inu (SHIB) market indicate a potential consolidation phase, raising questions among investors.
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Market analysts have noted that the lack of buying pressure coupled with a significant buildup of liquidation levels suggests SHIB could remain within a narrow trading range this week.
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According to COINOTAG, “Current market conditions highlight a cautious approach, as liquidation levels appear critical for the next price movements.”
Shiba Inu is likely to consolidate in a narrow range this week due to heightened liquidation levels; experts suggest watching key price thresholds.
Shiba Inu Facing Bearish Pressure Amid Range Formation
The Shiba Inu (SHIB) cryptocurrency is currently experiencing a bearish structure on the daily timeframe, primarily marked by consistent price action below key resistance levels. As of now, a breach of the recent lower high at $0.0000196 is crucial for a potential upward shift in the prevailing trend. In the interim, the cryptocurrency consolidated within a significant support zone at $0.0000147, while another critical support level lies at $0.0000128—historically proven as pivotal since September 2024.
Analysis of Shiba Inu’s Short-Term Price Movement
Investors are keen to identify shifts in market sentiment, especially as the daily Relative Strength Index (RSI) remains firmly in the bearish territory with a reading of 40. Despite some bullish momentum evidenced by the On-Balance Volume (OBV) moving upwards post-early February losses, this uptick has not translated into significant price movements for SHIB.
Source: SHIB/USDT on TradingView
Further analysis on the 4-hour chart indicates the presence of a range formation. Although a breakout was anticipated—marked in orange—current market conditions suggest the local highs at $0.000017 are proving to be formidable resistance. Moreover, the mid-range level at $0.0000157 stands out as significant short-term resistance, which market participants should monitor closely.
Understanding the Liquidation Heatmap’s Impact on Shiba Inu
The last month’s liquidation heatmap provides crucial insights into how price levels are influencing the ongoing consolidation. The data identifies two key liquidity clusters around $0.0000145 and $0.0000176, suggesting potential price points that the market might gravitate towards. This buildup of liquidation levels implies a likelihood of price movement towards these extreme boundaries in the near term.
Source: Coinglass
In summary, while Shiba Inu is currently navigating through a bearish phase, the presence of defined liquidity points suggests that traders may find actionable opportunities. A retest of approximately $0.0000145 could present a buying opportunity, whereas aiming towards the $0.0000176 level could serve as a target for profit-taking.
Conclusion
As the Shiba Inu market consolidates, the analysis of current price behaviors and liquidation heatmap data provides valuable insights for traders. Staying informed about these developments may facilitate more strategic trading decisions in the days ahead.
