In short
SHIB has risen by 19.01% over the past 7 days. Following this, the RSI has recently dropped from 85 to 51.8.
The number of whale addresses holding over 1 billion SHIB decreased by 155 within a month.
The price could drop by 17.8% to $0.000023 or rise by 42% to $0.000040.
The price of Shiba Inu (SHIB) continues to show high volatility amidst mixed technical signals. SHIB has risen by 19.01% over the past week, maintaining its position as the second-largest meme coin by market capitalization, second only to Dogecoin (DOGE).
The technical outlook for the token presents a complex picture, with the RSI falling from overbought levels and reduced whale accumulation, indicating a potential short-term correction. However, strong EMA indicators still leave room for significant upside, making SHIB's next price movements particularly important for traders.
SHIB RSI drops due to overbought conditions.
The RSI (Relative Strength Index) of SHIB has dropped from 85 to 51.8, indicating a significant weakening in buying momentum. When the RSI is at 85, it indicates that SHIB is severely overbought, with buyers dominating the market.
The current RSI is 51.8, indicating a more balanced market; after a period of traders taking profits, buying and selling pressures have become equal.
SHIB RSI. Source: TradingView
When SHIB peaked at $0.000033, the historical RSI was close to 90, representing extreme overbought conditions that are difficult to sustain. Currently dropping to 51.8 indicates a healthy consolidation phase rather than a trend reversal, as readings between 40-60 typically indicate stable market conditions.
While cooling may lead to a short-term price adjustment, it does not necessarily mean the end of an uptrend. It promotes more sustainable price growth by preventing market exhaustion.
Whales are not hoarding Shiba Inu.
The decline in the number of SHIB whales indicates that large holders are taking profits or reducing their exposure during the recent price rise.
Whale investors hold a large amount of stock, capable of having a significant impact on the market; they often lead market trends while smaller investors follow suit. The gradual exit of whale investors indicates a cautious attitude among investors regarding SHIB's current valuation levels.
Individuals holding at least 1 billion SHIB. Source: Santiment
The number of wallets holding over 1 billion SHIB decreased from 11,013 to 10,858, indicating a loss of 155 major holders within just one month. This redistribution from large holders to smaller holders typically creates selling pressure and may signal a weakening of bullish sentiment.
However, this redistribution also means that SHIB ownership is becoming more decentralized; despite short-term selling pressure, this is beneficial for long-term price stability.
SHIB Price Prediction: Is a 17% correction imminent?
The price of Shiba Inu falling below the shortest EMA line indicates a weakening of its recent bullish momentum.
Although the long-term EMA remains bullish, the price movement below the fastest moving average indicates that short-term bearish pressure is increasing.
SHIB Price Analysis. Source: TradingView
The price is currently at a critical juncture and could experience significant volatility. A bearish scenario could lead SHIB's price to drop to support levels of $0.000026 and $0.000023, a decline of 17.8%.
Conversely, if the bulls regain control, SHIB's price may retest the recent high of $0.000033 and potentially surge to $0.000040, a 42% increase from current levels.
