Shiba Inu (SHIB) has been struggling with a recent price drop, causing uncertainty among traders. In the last 24 hours, the token fell over 8%, and it has seen a 10% decline over the past week. Despite this, the price action has been marked by conflicting signals, leaving traders wondering whether this is a buying opportunity or a sign of further losses.

Bulls Fail to Shift Momentum

Shiba Inu’s price movement over the past week has highlighted a lack of bullish momentum. The $0.000012 support zone, which was expected to bounce, has instead formed short-term resistance at $0.0000125. Bulls attempted to push past this resistance but were unsuccessful, indicating that bullish conviction is weak. As a result, the token has faced pressure, and further losses may be in store if the resistance remains intact.

Analysts have pointed out that Q2 2025 could be an ideal time for long-term altcoin accumulation, suggesting that those with a longer investment horizon might consider buying during the current consolidation phase. However, short-term traders may need to be cautious as the market remains volatile.

Range-Bound Trading and Bearish Pressure

Shiba Inu has been trading within a narrow range between $0.000012 and $0.000013, with the Relative Strength Index (RSI) on the 4-hour chart failing to break the neutral 50 level. This indicates that there’s no clear momentum in either direction. Traders have witnessed multiple attempts from the bulls to shift the momentum, but they have met resistance at the $0.0000125 level, which has repeatedly acted as a ceiling for price movement.

Moreover, the On-Balance Volume (OBV), which tracks buying and selling pressure, has been relatively flat, showing that neither the bulls nor bears have fully taken control of the market. This suggests that Shiba Inu might continue to trade in a range, with no immediate breakout in sight.

Short-Term Price Action and Volatility

While Shiba Inu is currently testing the lower end of its trading range, the likelihood of a price bounce towards the higher end of the range is uncertain. Resistance at $0.0000125 remains a significant hurdle, and with low trading volume, a move upward seems unlikely in the short term. However, the range-bound pattern could persist for a while, and some volatility is to be expected as traders adjust their positions.

The liquidation heatmap data from the past week shows liquidity pockets at $0.0000119, $0.0000118, and $0.0000125. These areas are key to understanding potential price movements. If the price drops below the range, it may test these liquidity pockets, leading to further downside. On the other hand, a rebound toward the range highs could occur if market conditions change.

Risk Management for Traders

For swing traders, the current market offers a potential long position, but caution is necessary. The low volume and weak bullish signals mean that risk management is crucial. Traders should be prepared for potential volatility and set stop-loss orders to minimize losses in case the price continues to decline.

While the market outlook for Shiba Inu is uncertain, there is still potential for a short-term bounce, particularly if trading volume increases. Traders should keep a close eye on the market for any signs of a trend reversal or a breakout above resistance levels. However, without significant bullish momentum or a change in market sentiment, Shiba Inu may continue to face challenges in the near term.