Shiba Inu (SHIB) is approaching a critical point, teetering on the edge of a descending wedge pattern that could trigger a significant move. Historically, this pattern has been linked to increased volatility, potentially leading to a breach of local moving averages and a long-term reversal. However, there is also a possibility that SHIB could reverse and retrace its losses back inside the wedge.

SHIB has been on a downward trajectory since its peak earlier this year, with bearish momentum evident in the 50 EMA being above the current price. If SHIB can break through this level, it might signal the start of a bullish phase. The 200 EMA and the 100 EMA are the next significant resistance levels to monitor for any sustained upward movement.

On-chain data provides additional insights, revealing a predominantly negative sentiment, with strong selling pressure indicated by exchange signals. Despite this, net network growth is slightly positive, indicating some new interest in SHIB. However, this is not strong enough to counterbalance the bearish exchange signals. SHIB is under the bid-ask volume imbalance, revealing a significant tilt toward sellers.

At the current price, 51% of SHIB holders are profitable, while 47% are not, which might lead to more selling pressure from those trying to offset their losses. The percentage of large holders is 73%, a high number that could cause a volatility surge if these holders decide to sell. Additionally, there is a moderate correlation between SHIB and Bitcoin, indicating that Bitcoin's performance has a limited impact on SHIB's price movements.

As SHIB nears this critical juncture, investors and enthusiasts alike are eagerly watching to see if it will break out or reverse. The outcome will depend on various factors, including market sentiment, trading volumes, and the actions of large holders. One thing is certain, however - SHIB is poised for a significant move, and the next few days will be crucial in determining its future trajectory.