Recent sentiment in the cryptocurrency market has shown a significant reversal, with the price of Shiba Inu (SHIB) rising 5% in a single day, boosting overall risk appetite. The prolonged three-week downturn has been completely overturned, with SHIB accumulating an 8.02% increase over the past seven days, successfully reclaiming all its losses. This rebound is driven by a concentrated liquidation of short positions, with approximately $327 million in positions across the market being forcibly closed, including over $38,000 in liquidations specifically for SHIB, which has become a key driver of the price recovery.
From a technical perspective, the weekly Bollinger Bands for SHIB have significantly narrowed, forming a typical “Bollinger Band squeeze” pattern, which usually indicates an impending directional breakout. The current key resistance level is at $0.00000587, with a secondary resistance at $0.00000653; support is focused at $0.00000526. If the price effectively breaks through the resistance zone, it may initiate a new upward trend; conversely, if it falls below support, it could regain downward pressure.
On-chain data and derivatives markets indicate that trading activity is gradually recovering after a pullback, but the overall market remains cautious. Most participants are waiting for confirmation signals of the subsequent trend and have not significantly increased their positions, suggesting that confidence restoration will take time. The current market situation appears more like a rebound rather than a trend reversal, with future movements highly dependent on ongoing changes in market sentiment and capital flows.