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Current price action and on-chain metrics indicate that Shiba Inu is showing encouraging signs of exiting its long downtrend. After months of consolidation, SHIB is currently trading near a crucial resistance level at $0.000025, which could pave the way for a larger recovery.
The 50-day and 200-day exponential moving averages (EMA), which are often considered bullish signals, are among the important EMAs that SHIB has managed to surpass on the daily price chart. A notable increase in trading volume over the past week suggests that investor interest is increasing. The next key level to watch is $0.00003; sustained holding above this resistance could lead to higher targets.
This positive outlook is further supported by recent on-chain data. The significant activity of large holders is evident from the $2.69 billion in transactions over $100,000 that Shiba Inu saw last week. Additionally, 61% of SHIB holders are profitable at the current price, which may encourage further accumulation. However, selling pressure could still exist if prices rise quickly, as 31% of addresses are still underwater.
The 73% concentration of large holders further highlights how vulnerable SHIB is to whale activity. While this indicates strong support, it also raises the risk of volatility in the event large portfolios decide to cash out. Over the past day, trading volumes remained robust at 3.4 trillion SHIB, indicating steady market participation.
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Although well below its seven-day peak of 29.22 trillion, the steady activity indicates that interest in SHIB is still there, perhaps due to the recovery of the cryptocurrency market as a whole. If SHIB maintains its current pace and trading volume continues to increase, the token could surpass its most recent highs.
New investors would likely be attracted by a clear break above $0.000025, which would push prices towards higher resistance levels. However, traders should remain on the lookout for possible profit-taking by large operators, which could temporarily halt its progress.