Shiba Inu (SHIB) price prediction: possible liquidation of short positions at $5200, must break through $0.00001435 to confirm bullish.

The price of Shiba Inu (SHIB) has significantly fallen over the past week, triggering pessimism among investors and leading to a wave of selling pressure in the market. Today (28) in the Asian early session, Shiba Inu is currently reported at 0.00001410 USD. If SHIB recovers and starts to pump, it could cause substantial losses for investors who are shorting this meme coin.

The liquidation chart shows a significant trend: if Shiba Inu recovers the recent 10% fall, short positions exceeding $52 million may be liquidated. Shorting bets on a decline, but if SHIB rebounds, they will suffer huge losses.

As short positions are liquidated, the market will see an increase in buy orders, which will subsequently push up prices. This is particularly beneficial for SHIB holders, especially when this altcoin successfully regains upward momentum, thereby strengthening its optimistic outlook.

However, the market signals are showing some concerning signs. The number of active addresses for Shiba Inu has decreased by 36% in the past 48 hours, indicating that investors have lost confidence in the market's rapid recovery and are exiting the market.

This kind of fall reflects insufficient confidence in the short term. As more investors withdraw their investments, buying pressure is needed to trigger a recovery.

Shiba Inu needs to break through resistance

Currently, the trading price of Shiba Inu is about 0.00001413 USD, slightly below the resistance level of 0.00001435 USD. The signals for this meme coin are mixed.

Shiba Inu needs to break through the key resistance level of 0.00001435 USD to recover.

If the price continues to fluctuate within the accumulation range of $0.00001317 to $0.00001435, traders will be protected from liquidation risks. The sideways consolidation will keep altcoins in a neutral range, avoiding sharp price fluctuations in the short term.

However, if the resistance level of $0.00001435 is broken and turns into a support level, Shiba Inu may rebound to $0.00001553, marking a 10% recovery that counters the current bearish sentiment and opens up a more optimistic outlook for altcoins.

(Source: Trading View)