Shiba Inu has seen a significant price increase since September, reaching multi-month highs with a 24% gain recently. This surge has allowed SHIB tokens to approach profitability, particularly for those acquired between $0.00002900 and $0.00003300. However, rising outflows and investor uncertainty could hinder sustained profitability.
The GIOM metric shows around 21.53 trillion SHIB tokens are on the verge of profitability if Shiba Inu maintains its upward trend. Yet, in the current market environment, achieving this seems challenging, with technical indicators suggesting further volatility.
Despite the recent price rise, the Chaikin Money Flow (CMF) indicates outflows outpacing inflows, suggesting a decline in investor sentiment. This shift aligns with increased selling activity as investors await stronger bullish signals, creating short-term price fluctuations.
Shiba Inu faced a 7% price drop today, causing the price to settle at $0.00002872. This volatility highlights the coin's sensitivity to rapid market changes. The coin narrowly missed closing above its resistance level, pointing towards potential risks of further downside.
Long-term holders continue to back Shiba Inu, but without significant bullish momentum, the meme coin might struggle with short-term volatility. However, the broader cryptocurrency market's bullish sentiment might still break resistance, improving SHIB's profitability outlook.
Overall, investors should closely monitor market trends to assess whether Shiba Inu can reverse the bearish sentiment and achieve sustained profitability despite recent outflows and volatility challenges.
