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Shiba Inu's Upward Attempt Could Be a Trap: The Price Must Break Through This Level.

The Shiba Inu price has risen 7.2% in the past week, sparking hopes of a breakout. However, traders hoping to ride this momentum should think twice. SHIB is approaching the upper end of a pattern that can often reverse in either direction, and false signals here could be costly.

Furthermore, despite the weekly price increase, several on-chain and technical clues have emerged that suggest all may not be well in the broader Shiba Inu price action. If they are not careful, a trap could be forming for the bulls.

Profit Taking and Cryptocurrency Exchange Flows Indicate Selling

The first bearish sign comes from the percentage of addresses in profit. This is a key on-chain metric that tracks how many SHIB holders are in profit. At the beginning of September, only 38.57% of addresses were in profit. This figure has risen to 44.11%, marking the third-highest local peak in a month.

Previous peaks marked short-term highs. On August 13th, when 47% of addresses were in profit, SHIB experienced a 13% correction. On August 22nd, at 45.26%, the SHIB price fell by approximately 10%. The recent increase suggests that holders are planning to take profits again.

This is already evident in the exchange's net position change, which measures the inflow and outflow of SHIB onto cryptocurrency exchanges. On September 5th, net outflows were approximately -836 billion SHIB, indicating that holders were withdrawing their tokens from exchanges. By September 10th, inflows had sharply reversed to +788.91 billion SHIB.

This represents a change of 1.62 trillion SHIB, which is currently available for sale on exchanges.

Together, these metrics suggest that profit-taking is not only possible, but has already begun. This selling pressure is now seeping into the charts.

Key Shiba Inu Price Levels to Watch

On the daily chart, the Shiba Inu price is trading within a symmetrical triangle. A close above $0.00001320 might appear bullish at first glance, but there are reasons to be cautious.

First, the triangle pattern is neutral: it can break in either direction. This means that an upward breakout does not automatically confirm a bullish move unless supported by heavy buying pressure. The on-chain metrics discussed previously have undermined these expectations, at least for now.

Second, while the price is pressing towards resistance, momentum is showing a hidden bearish divergence. This occurs when the price makes a lower high while the Trading Strength Index (RSI)—an indicator that measures the strength of buying and selling momentum—makes a higher high.

A hidden bearish divergence typically signals a continuation of the broader downtrend (-1.35% for SHIB on a yearly basis), meaning that even if SHIB breaks above resistance, the move could quickly fade.

From a broader perspective, the key levels are becoming clear.

For a breakout to gain traction, SHIB simply closing above $0.00001320 isn't enough. A decisive move above $0.00001351 would invalidate the bearish divergence, align the price with momentum, and open a path to new highs.

Anything less risks the price turning into a bull trap, where the higher low formation would still be valid.

If the move stalls, SHIB could pull back to the $0.00001267 support. A deeper drop to $0.00001181 would make the entire structure bearish and confirm that the breakout attempt failed.