The price of Shiba Inu (SHIB) continues to exhibit high volatility amidst mixed technical signals. SHIB has risen 19.01% over the past seven days, maintaining its position as the second-largest meme coin by market capitalization, only behind Dogecoin (DOGE).
The technical aspects of the token present a complex picture, with RSI pulling back from overbought levels and a decrease in whale accumulation, indicating a potential short-term correction. However, strong EMA indicators still leave room for substantial upward movement, making SHIB's next price action particularly important for traders.
SHIB RSI falls 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. An RSI of 85 signifies severe overbought conditions, with buyers dominating the market.
The current RSI is 51.8, indicating a more balanced market, with buying and selling pressures having equalized after traders took profits for a time.
When SHIB peaked at $0.000033, the historical RSI approached 90, representing an extreme overbought condition that is difficult to sustain. Currently dropping to 51.8 indicates a healthy consolidation phase rather than a trend reversal, as readings between 40-60 typically signify stable market conditions.
While the cooling off may lead to a short-term price adjustment, it does not necessarily indicate the end of the upward trend. It facilitates more sustainable price growth by preventing market exhaustion.
Whales are not accumulating Shiba Inu.
The decline in the number of SHIB whales indicates that large holders are taking profits or reducing exposure during the recent price surge.
Whale investors hold a substantial amount of stocks, capable of significantly influencing the market; they typically lead market trends while small investors follow. The gradual exit of whale investors suggests a cautious attitude towards SHIB's current valuation level.
The number of wallets holding over 1 billion SHIB has decreased from 11,013 to 10,858, indicating a loss of 155 major holders in just one month. This token distribution from large to small holders typically creates selling pressure and may signal a weakening bullish sentiment.
However, this redistribution also means that SHIB ownership is becoming more decentralized, which, despite short-term selling pressure, is beneficial for long-term price stability.
SHIB Price Prediction: Is a 17% correction imminent?
The price of Shiba Inu has fallen below the shortest EMA line, indicating a weakening momentum in its recent bullish trend.
Although the long-term EMA remains bullish, the price movement below the fastest moving average indicates that short-term bearish pressure is increasing.
The price is currently at a critical juncture, which may lead to significant volatility. Bearish scenarios could see the SHIB price drop to support levels of $0.000026 and $0.000023, representing a decline of 17.8%.
Conversely, if the bulls regain control, the SHIB price may retest recent highs of $0.000033 and possibly surge to $0.000040, a 42% increase from current levels.
