Why Shiba Inu Could See a Bounce Despite Market Slump

Leading meme coin Shiba Inu (SHIB) has fallen 2% today amid broader market weakness, maintaining a largely sideways trajectory it has held since the beginning of August.

This muted performance reflects the overall market’s cautious sentiment, with investors remaining hesitant. However, readings from two key on-chain metrics suggest that SHIB could be poised for a rebound.

SHIB Might Be Poised for a Bounce

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

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SHIB Liquidation Heatmap. Source: Coinglass

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 zones act as magnets for price action, as the liquidation of leveraged trades can create rapid price movements.

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

Furthermore, SHIB’s Net Unrealized Profit/Loss (NUPL) has remained mostly negative throughout August, indicating that token holders have been sitting on unrealized losses since the start of the month.