Shiba Inu Shows Weak Performance Amid Favorable Indicators

Shiba Inu (SHIB) recently showed some weakness, despite good signals in the market. The price dropped over 3.5% in one day, but trading volume increased by more than 40%. This raises questions about whether SHIB’s growth will last and how confident key investors are.

While certain technical signals lean positive, others reflect ongoing pressure and buyer caution. SHIB is caught between key support and resistance, making its near-term path uncertain.

Technical Signals Suggest Fragile Momentum

Analysts often rely on the Relative Strength Index (RSI) to get a sense of momentum. The RSI looks at how fast and how far prices change to show if an asset is overbought or oversold. In the case of SHIB, the RSI has risen to around 37, having previously lingered near oversold levels under 30. This points to a slight reduction in selling activity.

However, the token failed to surpass the 51 RSI mark in a recent attempt, signaling that bullish momentum is still weak. This matters, as the inability to break this threshold means buyers remain tentative, and SHIB hasn’t yet gained enough traction to trigger a confident upward move.

Simultaneously, the price recently fell below a key support level near $0.000012, and moving averages, particularly the 50-day Exponential Moving Average (EMA), are aligned in a way that exerts downward pressure. The MACD histogram further confirms this bearish trend.

These mixed signals create a tense standoff. The RSI’s mid-range position leaves open the possibility of a breakout or further decline, but the price action is largely confined within a descending triangle pattern. Should support near $0.0000115 break, it could usher in additional downward momentumbefore any significant rebound occurs.

Trading Volume Contrasts with Declining Whale Activity

At first glance, the nearly 44% jump in SHIB’s daily trading volume might suggest renewed investor interest or even a potential turnaround. But the reality is more nuanced. Volume spikes often accompany sharp price drops when retail investors, or “weaker hands,” capitulate and exit their positions.

In fact, a large sell-off of approximately 211 million SHIB tokens was reported on June 17, aligning closely with the downward price movement. This kind of retail capitulation can create immediate downward pressure but also sometimes precedes short-term rebounds once selling exhausts itself.

Meanwhile, whale activity has been on a slow decline since early June. Though modest, this drop is significant because it hints at reduced confidence from major holders who traditionally provide stability and support during market volatility.

The number of whale wallets fell from 10,259 to 10,231 in just over a week. This steady erosion suggests some large investors might be taking profits or preparing for further price declines. When whales retreat, the market often becomes more susceptible to wild swings, as smaller traders alone can’t provide sufficient support.

Key Levels To Watch Now

Price levels around $0.0000128 and $0.0000114 now serve as immediate resistance and support boundaries for SHIB. If the token can muster enough buying strength to push above $0.0000128, it may challenge bearish sentiment and rally higher.

Losing the $0.0000115 support could lead SHIB to a steeper downturn, potentially revisiting its earlier lows from this year. The price is pressured by short-term EMA lines staying below the longer-term ones, a typical bearish signal.

Here’s the thing: despite all these technical pressures, the crypto market is often shaped by factors beyond charts alone. Broader trends, investor sentiment, and external news can quickly shift momentum. For Shiba Inu, community engagement and developments related to the token’s ecosystem will play a crucial role in shaping its trajectory.

What To Expect From SHIB?

Shiba Inu’s path to gaining strength remains difficult despite some hopeful indicators. Increased trading volume and a slight rise in RSI add a touch of optimism, but declining whale activity and downward EMA trends are weighing on SHIB’s near-term outlook.

The future direction depends heavily on whether buyers regain confidence or if the bearish sentiment continues to dominate.