#Crypto Market Pullback  Why Shiba Inu Could Rise Despite Market Stagnation

Leading meme coin SHIB fell 2% today due to broader market weakness, continuing its sideways trend since early August.

This subdued performance reflects the broader market's cautious investor sentiment, which continues to remain cautious. However, data from two key on-chain metrics suggest that SHIB could be poised for a recovery.

SHIB May Be Poised for a Bounce

An assessment of SHIB's Liquidation Heatmap reveals potential buying pressure that could trigger renewed upward momentum. According to the data, there is a concentration of leveraged positions and liquidity above the meme coin's price near the $0.0000135 region.

A Liquidity Heatmap is an on-chain tool that visualizes areas where large amounts of stop-loss orders, leveraged positions, or buy and sell orders are clustered. These areas act as magnets for price action because liquidation of leveraged trades can generate rapid price movements.

For SHIB, the heatmap indicates sufficient liquidity just above its current price of $0.0000122. This suggests that if market conditions improve, a coordinated buying wave could propel the meme coin upwards.

Furthermore, SHIB's Net Unrealized Profit/Loss (NUPL) remained mostly negative throughout August, indicating that token holders have experienced unrealized losses since the beginning of the month.

This metric reflects the net profit or loss based on the price at which coins are traded on-chain. A positive NPL indicates increasing profitability across the network, while a negative NPL for SHIB indicates that many holders are experiencing losses.

In such cases, traders typically avoid selling at market prices to avoid realizing losses, preferring to hold their positions. Such extended holding periods can reduce selling pressure and support short-term upward momentum for SHIB's price.

Market Uncertainty Affects SHIB, but a Rise is Possible

If buyers step in, SHIB could target $0.0000129. A successful break above this resistance level could trigger a subsequent rally to $0.0000138.

However, if demand decreases and more traders sell, the value of SHIB could drop below $0.0000167.

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