The major meme coin Shiba inu (Shib) has fallen 2% amid the weaknesses of the broader market and has maintained a predominantly horizontal trajectory since the beginning of August.
This muted performance reflects the cautious sentiment of the market as investors are hesitant. However, measurements from two important on-chain metrics suggest that the sib is ready for rebound.
Shiv may be ready for bounce
An assessment of Shib’s liquidation heatmap could reveal potential purchase pressures and update the upward momentum. Coinglass data shows that leveraged location and liquidity concentration exceeds the price of Meme Coin near the $0.0000135 region.
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Liquidity Heatmap is an on-chain tool that visualizes the areas in which large numbers of stop loss orders, leveraged positions, or purchase and sales orders are clustered. These zones act as magnets for price action as they can generate rapid price movements due to the liquidation of leveraged transactions.
For SHIB, the heatmap shows that there is sufficient liquidity immediately at 0.0000122 of the current price. This means that if the market situation improves, a adjusted purchase wave can make meme coins higher.
Furthermore, Shib’s net unrealized profit/loss (NUPL) remained almost negative throughout August, indicating that token holders have been sitting at unrealized losses from the beginning of the month.
This metric reflects the net profit or loss of all coins transferred in the chain based on the price that was last moved. Positive NPLs suggest increased profitability across the network, while negative NPLs like Shiv suggest that many holders are losing money.
In such circumstances, traders tend to hold positions as they are often reluctant to sell at market prices to avoid realizing losses. Extending these retention periods can reduce sales pressure and support Shiv’s price rise momentum in the short term.
Market uncertainty hits vigorously, but bounce is still possible
If the buyer intervenes, Shiv can target $0.0000129. A successful break above this level of resistance could potentially raise the next leg to $0.0000138.
However, if demand declines and more traders are sold, the value of Shiv could fall below $0.0000167.
Why Shiba Inu can see the bounce despite Shiba Inu being the first to appear in Beincrypto.
