The price of Shiba Inu (SHIB) continues to show significant volatility amid mixed technical signals. Over the past seven days, SHIB has risen by 19.01%, maintaining its position as the second largest meme coin by market capitalization, just behind Dogecoin (DOGE).
From a technical perspective, the current trend is quite complex, with the RSI indicator retreating from the overbought zone and whale accumulation decreasing, which may signal a risk of adjustment in the short term. However, the EMA indicator still shows strong upward potential, indicating that the price trend of SHIB remains uncertain, which is crucial for traders.
SHIB's RSI has dropped due to overbought conditions.
Specifically, SHIB's RSI has fallen from 85 to 51.8, showing a significant weakening of buying momentum.
When the RSI reaches 85, it indicates that the market is in an overbought state, with buyers dominating. The current RSI is at 51.8, indicating that market sentiment is tending towards balance, with buying and selling pressure approaching equilibrium after a period of profit-taking.
When SHIB reached a high of $0.000033, the historical RSI was close to 90, indicating that the market was extremely overbought and struggling to maintain the current upward momentum. The RSI has now retreated to 51.8, suggesting that the market is undergoing healthy consolidation rather than a trend reversal. Generally, values between 40-60 indicate that the market is stable.
Although a cooling market may bring short-term price adjustments, it does not mean the upward trend has ended. On the contrary, it helps prevent excessive market expansion and paves the way for more sustainable growth.
Whales are not accumulating Shiba Inu.
Regarding whales, recent data shows that large holders have gradually reduced their positions or taken profits as the price of SHIB rises.
Whale investors hold a significant amount of SHIB, and their buying and selling often have a substantial impact on the market, typically leading market direction, while small investors tend to follow their lead. Therefore, the withdrawal of whale investors may indicate some reservations about the current valuation of SHIB, and market sentiment has correspondingly become more cautious.
The number of wallets holding over 1 billion SHIB has decreased from 11,013 to 10,858, indicating that 155 large holders have exited within a month. This transfer of tokens from large holders to retail investors typically brings some selling pressure and may signal a weakening bullish sentiment.
However, this shift also has its positive side. The distribution of SHIB holders has become more decentralized, which may lead to more selling pressure in the short term, but in the long run, it helps enhance price stability.
Regarding the price trend of SHIB, could a 17% adjustment be on the horizon?
Currently, the price of Shiba Inu has fallen below the shortest EMA line, indicating that its upward momentum has weakened in the short term. Although the long-term EMA still shows bullish signals, the price being below the shortest moving average indicates that selling pressure is increasing in the short term.
The price of SHIB is currently at a critical juncture, with potential for significant volatility ahead. If market sentiment leans bearish, the price of SHIB may pull back to support levels of $0.000026 or $0.000023, potentially dropping by 17.8%.
However, if the bulls regain control of the market, the price of SHIB may test the previous high of $0.000033 again, with a chance to break through and even surge to $0.000040, an increase of about 42% from the current price.