Shiba Inu price has gained 7.2% over the past week, fueling hopes of a breakout. But traders looking to ride this momentum may need to think twice. SHIB is moving closer to the upper edge of a pattern that often flips both ways — and false signals here can be costly.
Also, a few on-chain and technical hints have surfaced that show that, despite the weekly price surge, all might not be well with the broader Shiba Inu price action, and a trap might be forming for the bulls if they are not attentive.
Profit-Taking Metrics And Exchange Flows Signal Selling
SponsoredThe first bearish sign comes from the percentage of addresses in profit, a key on-chain metric that tracks how many SHIB holders are above water. At the start of September, just 38.57% of addresses were in profit. That figure has since climbed to 44.11%, forming the third-highest local peak in a month.
Earlier peaks have marked short-term tops. On August 13, when 47% of addresses were in profit, SHIB corrected 13%. On August 22, at 45.26%, the SHIB price slipped close to 10%. The latest spike suggests holders may again be preparing to book profits.
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This is already visible in the exchange net position change, which measures how much SHIB is flowing in and out of exchanges. On September 5, net outflows stood at about −836 billion SHIB, showing holders were pulling tokens off exchanges. By September 10, flows flipped sharply to +788.91 billion SHIB.
SponsoredThat’s a 1.62 trillion SHIB swing, now sitting on exchanges and ready to be sold.
Together, these metrics show that profit-taking is not just likely; it has already started. That selling pressure is now creeping into the charts.
Key Shiba Inu Price Levels To Watch
On the daily chart, the Shiba Inu price is trading inside a symmetrical triangle. A close above $0.00001320 may look bullish at first glance, but there are reasons to be cautious.
SponsoredFirst, the triangle pattern itself is neutral — it can break either way. That means an upside breakout does not automatically confirm a bullish move unless it’s backed by heavy buying pressure. The on-chain metrics discussed earlier have put those expectations to rest, at least for now.
Secondly, while price is pressing toward resistance, momentum is flashing a hidden bearish divergence. This occurs when price makes a lower high while the Relative Strength Index (RSI) — an indicator that measures the strength of buying and selling momentum — forms a higher high.
Hidden bearish divergence usually signals continuation of the broader downtrend (year-on-year -1.35% for SHIB), meaning even if SHIB pokes above resistance, the move could fade quickly.
SponsoredZooming out, the key levels become clear.
For a breakout to hold weight, SHIB needs more than just a close above $0.00001320. Only a decisive move above $0.00001351 would invalidate the bearish divergence, align price with momentum, and set up a path toward new highs.
Anything less risks becoming a bull trap as the price’s higher low formation would still hold.
If the move stalls, SHIB could retreat to support at $0.00001267. A deeper slide toward $0.00001181 would flip the entire structure bearish and confirm that the breakout attempt had failed.
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