Shiba Inu's Profit Surge, But Price Stagnates

Shiba Inu (SHIB) has witnessed a significant turnaround in profitability, with on-chain data indicating that 41 trillion SHIB tokens are now in the green. Despite this positive development, the asset's price action remains weak, and it is trailing other recovering cryptocurrencies in the market.

The recent increase in profitability can be attributed to price stabilization, but this does not necessarily signal a breakout for SHIB. The token is still under bearish pressure, as it is trapped beneath a descending trendline. While the profitability increase is encouraging for long-term holders, it has not yet translated into an uptrend. SHIB's price is currently hovering around a critical threshold after failing to break important resistance levels.

SHIB continues to face significant obstacles from the trendlines resistance, which restricts any notable upward movements. Investors are raising concerns because Shiba Inu is not reflecting the recovery of the larger cryptocurrency market. Although SHIB is still under selling pressure, other well-known cryptocurrencies such as Bitcoin and Ethereum have recovered more forcefully.

In order to acquire bullish momentum, SHIB needs to first break above the descending trendline, which is serving as a crucial resistance level. If the token is unable to accomplish this, further consolidation or even a retest of lower support levels is still a possibility. Although the profit rebound of 41 trillion SHIB is positive, it does not guarantee a long-term recovery.

Shiba Inu's future price action remains uncertain until it can overcome significant resistance levels and continue on the upward trajectory of the larger market. A clear move above the trendline would be one of the main signals of a bullish reversal.