- Shiba Inu remains underwater
- Sustained trend needed
Shiba Inu appeared to have a chance of eliminating another zero for a split second. The market gained momentum, the price recovered sharply from local lows and optimism began to resurface. Unfortunately, it was a short-lived optimism. The same reason that appears each time SHIB attempts to get out of its range is the reason why the move stalled right where it mattered most.
Shiba Inu remains underwater
As of right now, SHIB is trading significantly below its long-term moving averages and is still trapped in a larger downtrend. Instead of a breakout, recent price action indicates a bounce. Selling pressure spiked as soon as the SHIB price started rising, ending the move before it could become significant and trigger the zero removal event.
SHIB/USDT Chart by TradingViewThere were several factors that could lead to zero removal. First, there was less immediate downside risk because SHIB had already absorbed a sizable amount of selling earlier. Second, as traders searched for high-beta plays that trailed the overall market, speculative interest increased. Momentum alone might have put SHIB in a psychological squeeze after a clear break above resistance, driving short sellers out and pushing the price into the next decimal zone.
However, a scenario with a massive supply sitting on exchanges is a reality. Every push upward turns into an offer to sell. Swing traders, short-term bots and long-term holders all unleash their strength. For bulls, that supply is like a cold shower: as soon as the price starts to rise, liquidity floods the market, killing follow-through. It is evident in both volume and structure.
Sustained trend needed
Usually, an activity spike is not a reflection of a sustained rally or activity. Without RSI growth, constant moving averages testing and longer-term trend change signals, “zero removal” is not likely to happen in the short term.
The zero removal narrative might turn into reality in a longer perspective, especially if exchange balances are going to drop substantially and the price breaks through important moving averages.
Source: https://u.today/shiba-inu-zero-removal-party-canceled
