Leading meme coin Shiba Inu (SHIB) has experienced a 2% decline today amid general market weakness, continuing a largely sideways trend that has persisted since early August.
This subdued performance mirrors the overall market’s cautious sentiment, with investors showing reluctance. However, data from two critical on-chain indicators suggest that SHIB may be on the brink of a rebound.
SHIB Might Be Ready for a Rebound
An analysis of SHIB’s Liquidation Heatmap identifies potential buying pressure that could ignite renewed upward movement. According to Coinglass data, there is a concentration of leveraged positions and liquidity just above the meme coin’s price around the $0.0000135 region.
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A Liquidity Heatmap is an on-chain tool that illustrates areas where large clusters of stop-loss orders, leveraged positions, or buy and sell orders are located. These zones serve as magnets for price action, as the liquidation of leveraged trades can lead to rapid price fluctuations.
For SHIB, the heatmap indicates that adequate liquidity exists just above its current price of $0.0000122. This suggests that a coordinated buying effort could elevate the meme coin if market conditions improve.
Additionally, SHIB’s Net Unrealized Profit/Loss (NUPL) has largely remained negative throughout August, indicating that holders have been experiencing unrealized losses since the month began.
This metric shows the net profit or loss from all coins moved on-chain, based on their last movement price. A positive NPL indicates heightened profitability across the network, whereas a negative one, like SHIB’s, signifies that many holders are at a loss.
In such scenarios, traders often hesitate to sell at market prices to avoid realizing losses; therefore, they typically choose to hold their positions. Extended holding periods like this can diminish selling pressure and foster upward momentum for SHIB’s price in the short term.
Market Uncertainty Affects SHIB, But a Rebound Is Possible
If buyers engage, SHIB could aim for $0.0000129. A successful break above this resistance level might initiate the next rally toward $0.0000138.
However, should demand diminish and more traders choose to sell, SHIB’s value could decline below $0.0000167.
The post Why Shiba Inu Could See a Bounce Despite Market Slump appeared first on BeInCrypto.
