Shiba Inu (SHIB) finds itself in a challenging position. Despite initial signs of recovery following a recent market crash, the digital asset has struggled to gain traction, leading to a persistent downturn in its value. Recent trends and on-chain metrics suggest that traders may be facing a tough road ahead, with significant resistance levels and bearish sentiment looming.

Persistent Downtrend for Shiba Inu

Over the past week, Shiba Inu has seen a substantial drop in value, losing approximately 11.65%. The situation has not improved, as the asset faced an additional decline of 2.11% in just the last 24 hours. This ongoing downward trend signals a troubling lack of market interest that could hinder any potential recovery.

Key Resistance Levels

At the heart of Shiba Inu’s current struggles is a crucial resistance level at 0.00001740. Following the market crash, SHIB found temporary support at 0.00001602, which provided a brief respite. However, the resistance zone has proven difficult to breach, as it typically triggers selling pressure that pushes prices lower.

The immediate question facing traders is whether the market will align with the expected outcomes associated with these resistance levels. Should selling pressure intensify, SHIB could drop back to 0.00001602, or even lower. Conversely, if the asset can break through this barrier, it may set its sights on higher targets, aiming for 0.00002169 in the short term and a more ambitious long-term goal of 0.00002945.

Bearish Sentiment Among Traders

Current market sentiment for Shiba Inu remains predominantly bearish. Many long traders are facing liquidations, having anticipated price increases that have not materialized. This shift in sentiment has resulted in significant losses for those holding long positions.

Recent data shows that over $432,970 worth of long positions have been eliminated from the market, reflecting a considerable decline in confidence in SHIB’s potential for recovery. Moreover, open interest indicators reveal that sellers currently outnumber buyers, putting further downward pressure on the asset’s price.

Declining Trading Activity

In addition to bearish sentiment, data from IntoTheBlock highlights a troubling trend: a 62.57% decrease in the volume of large transactions involving Shiba Inu, dropping to $27.99 million. This significant decline suggests that large investors are refraining from buying, which indicates a lack of confidence among this critical group.

The drop in trading volume correlates with the previously mentioned bearish trends and suggests that traders are increasingly inclined to sell. If this trend continues, Shiba Inu could face further downward movement in its price.

What Lies Ahead for Shiba Inu Traders?

The current market landscape for Shiba Inu presents a complex scenario for traders. On the one hand, if selling pressure eases, there remains a chance for SHIB to regain momentum. However, the prevailing bearish sentiment and key resistance levels create a challenging environment.

Investors and traders should monitor market developments closely as SHIB approaches this critical crossroads. The potential for further losses remains a real concern, and understanding the underlying trends and metrics will be essential for making informed decisions.

Conclusion

In summary, Shiba Inu’s persistent downturn is indicative of a challenging period for traders. With significant resistance levels, bearish sentiment, and declining trading activity, the road ahead appears tough. While there is a possibility for a turnaround if conditions improve, the current indicators suggest that traders should exercise caution.