Shiba Inu (SHIB), the popular dog-themed cryptocurrency, has shown signs of recovery, with its profitability increasing to 40%. This is a notable improvement after it recently dropped to a low of 18%. The shift in market sentiment points to a renewed sense of optimism among investors, as Shiba Inu benefits from the broader cryptocurrency market rebound.

In recent days, the cryptocurrency market has been trending upward, with Bitcoin and Ethereum leading the way. Both of these major cryptocurrencies have regained strength, positively impacting altcoins like SHIB. The market’s recovery is further supported by the introduction of a new crypto reserve, which includes XRP, Solana (SOL), Cardano (ADA), as well as Bitcoin and Ethereum. This development has injected fresh momentum into the market after a difficult month of February.

Shiba Inu, known rival to Dogecoin, is particularly sensitive to shifts in investor confidence. As the broader market has regained its momentum, SHIB has followed suit, registering a 4% increase in value at the time of writing. This positive movement contrasts with the price stagnation SHIB experienced during recent months, where it had struggled to maintain its position.

A key indicator of this recovery is the percentage of holders “in the money.” According to data from IntoTheBlock, 40% of Shiba Inu addresses are now in profit, a significant increase from the previous low of 18%. This rise in profitable holders suggests that more investors are benefitting from their SHIB holdings, reducing the pressure to sell. As more people enter the profit zone, it typically supports price stability, with fewer investors looking to liquidate their positions.

The In/Out of the Money (GIOM) indicator from IntoTheBlock also shows that 59% of Shiba Inu addresses are still “out of the money,” and 1% are at break-even. Despite the increase in profitable addresses, the market is still experiencing some pressure, with a large portion of holders still at a loss. However, as more addresses become profitable, the selling pressure is expected to ease, potentially further supporting SHIB’s upward movement.

As of the latest update, SHIB’s price stands at $0.00001416, reflecting a 3.9% increase over the past 24 hours. However, the cryptocurrency is still down 4.1% for the week. The coin saw a noticeable price jump in Sunday’s session, reaching a high of $0.0000152. This shows that the market remains volatile, with SHIB’s price likely to fluctuate as it attempts to establish a consistent upward trend.

Looking forward, Shiba Inu faces important resistance levels that could play a crucial role in determining whether the coin can maintain its momentum. The next major challenge for SHIB is breaking above its 50-day and 200-day moving averages, currently located at $0.00001733 and $0.0000192, respectively. Surpassing these levels would signal a bullish trend reversal, helping SHIB break out of its current consolidation range.

While the market remains unpredictable, the increase in profitability for Shiba Inu is a positive development. If the broader cryptocurrency market continues to recover and investor sentiment stays positive, SHIB may continue to gain ground. However, given the volatility of the crypto market, Shiba Inu’s price action will depend on how the market reacts to key support and resistance levels in the coming days.

In conclusion, Shiba Inu’s profitability returning to 40% is a clear sign of a shift in market sentiment. While some selling pressure remains from investors who are still at a loss, the rebound in profitability suggests that SHIB could see further growth. Traders and investors will be watching closely as SHIB aims to break key resistance levels and confirm its bullish momentum.