Shiba Inu (SHIB) has been struggling to break out of a downtrend that has persisted for the past three months. Despite recent attempts to regain momentum, SHIB’s price failed to sustain upward movement, indicating that the altcoin may not be able to recover just yet. As market conditions continue to fluctuate, Shiba Inu could face further challenges in its recovery efforts.

Shiba Inu Sees Long-Term Holders Panicking

Investor sentiment has taken a bearish turn, as evidenced by the rising Age Consumed metric. This metric tracks the movement of coins that have been held for an extended period of time. During a price decline, a spike in Age Consumed often indicates that long-term holders (LTHs) are selling their positions to offset losses.

In the case of Shiba Inu, the increasing movement of coins held for extended periods suggests that investors are not confident in a short-term price recovery. As a result, the market’s outlook remains cautious, with LTHs likely contributing to the selling pressure. Additionally, the current shift in market sentiment reflects growing uncertainty among Shiba Inu holders.

Weakening Macro Momentum

The macro momentum of Shiba Inu is also showing signs of weakness. The MVRV Long/Short Difference indicator, which measures the profit levels of short-term holders (STHs) versus long-term holders, suggests that short-term holders are currently dominating in terms of profits. As short-term holders remain in control, the market could experience continued volatility, with investors hesitant to buy into the token without confirmation of sustained price growth.

With short-term holders more likely to liquidate their assets quickly, Shiba Inu faces increased risks of further price declines. As a result, the market remains uncertain, and the potential for further downside remains a significant concern for investors.

SHIB Price Breakout Could Be Reversed

Shiba Inu’s price is currently hovering around $0.00001276, just above the support level of $0.00001275. After a brief breakout in the last 48 hours, SHIB failed to maintain upward momentum and is now facing resistance. The market sentiment suggests that further price drops could be on the horizon, and the coin may slide back into its long-standing downtrend.

If the downtrend persists, SHIB could dip below $0.00001141, extending the current bear market. This would confirm the continuation of the negative price action and delay any potential recovery. Investors should remain cautious and prepare for more uncertainty in the short term.

However, should Shiba Inu manage to rebound from the support level of $0.00001275, it could rise toward $0.00001462, clearing a significant resistance barrier. A break above this level would invalidate the bearish outlook and signal the start of a more substantial recovery for SHIB, allowing it to regain some of its lost value.

Outlook for Shiba Inu

The short-term outlook for Shiba Inu is currently bearish, with long-term holders selling off their positions and the broader market sentiment remaining cautious. The increasing selling pressure, combined with the weakening macro momentum, suggests that further declines may be possible in the near term. However, if Shiba Inu manages to find support at $0.00001275 and break key resistance levels, a recovery could be on the horizon. Investors should watch these levels closely to gauge the potential for a rebound.