Shiba Inu Price Stability Shaken As Bullish Momentum Weakens

• SHIB’s ADX has dropped to 24, signaling weakened momentum.
• On-chain metrics signal declining buying momentum, hinting that Shiba Inu price may test key support levels soon.

The Shiba Inu (SHIB) meme coin is showing signs of weakening momentum as it retested the 50-day EMA. Despite the global crypto market bull run, SHIB still failed to generate thrust and was facing a down move.

Over the past seven days, the SHIB coin price has dropped more than 6%. At the same time, holders might be hopeful that SHIB’s price will bounce back and recover from the recent losses. However, it could take some time before that happens.

At press time, the Shiba Inu coin price traded at $0.00002564, noting an intraday decline of over 5.24% and replicating selling pressure. Its market cap dropped to $15.10 Billion, ranked 13th among the top crypto coins.

Analysts See Bullish Potential for Shiba Inu Coin

Despite the ongoing weakening of bullish momentum, crypto analysts see a significant upside in SHIB in the short term.

A recent tweet by Shib Spain highlights that the Shiba Inu coin was hovering in a narrow range band and facing resistance near $0.000003000. Once the Shiba Inu price escapes the horizontal neckline, it may skyrocket in the short term.

According to the harmonics wave pattern, CW showed that the declining ‘C’ wave was completed and an emerging ‘D’ wave could lead the price higher. If Shiba Inu rebounds ahead, it could reach $0.00003250 in the short term.

Shiba Inu Price Prediction: Is a Bounce Toward $0.00003000 Imminent?

From a technical perspective, the daily chart shows that the Bull Bear Power (BBP) reading remained at 0.00006338. It means the SHIB bulls have an edge despite the significant retracement.

It shows that buyers have successfully defended a very vital support zone. However, the bullish trend seems to be slowing down as BBP has pulled back from its earlier peaks. It shows the sellers are trying to take control.

Meanwhile, SHIB’s EMA lines are slinging neutral, reflecting the consolidation. Since the last seven days, EMA lines showed a downward tilt, which means the bullish momentum is weakening.

Shiba Inu’s Average Directional Index (ADX), at 24, suggests a phase of indecision, lacking strong directional momentum. The current scenario refers to a weak trend, meaning the Shiba Inu price is likely to remain range-bound around the 50-day EMA support zone.

SHIB’s On-Chain Metrics Point to Challenges

SHIB’s large transactions have dropped over 4.24% in the last 24 hours and 38% in a week, which reflects a waning confidence or profit booking among large holders.

This significant profit booking could put selling pressure, which in turn potentially lead to the price decline.

Futures Open Interest (OI) has dropped over 1.40% to $91.23 Million, replicating a long unwinding move in the past 24 hours.

Furthermore, the long/short ratio dropped to 0.81, where long contracts have dropped to 47%. Conversely, short contracts have surged to 53%, unveiling that sellers have gained momentum.

The immediate support zones for Shiba Inu price were $0.00002430 and $0.00002300, whereas the upside hurdles were $0.00002830 and $0.00002920.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.