- Shiba Inu fails to break out of a bullish flag pattern, but there are chances that the trend will change.
- SHIB got rejected near its resistance at $0.0000259.
- Most metrics looked bearish, but a few market indicators suggested otherwise.
Discover the latest developments in Shiba Inu’s price action and what it means for investors.
Shiba Inu’s Stagnant Price Action
AMBCrypto’s analysis of Shiba Inu’s price chart revealed that the meme coin had broken above a bullish flag pattern on the 14th of May. The pattern emerged on the meme coin’s chart in March, and since then, SHIB has consolidated inside it. Generally, a breakout above a bullish flag pattern hits a massive uptrend. However, the case was different with SHIB, as it remained less volatile. We found that SHIB got rejected near its resistance at $0.0000259, causing its price to remain less volatile. If SHIB manages to turn that resistance into support, then the meme coin might begin its journey towards its March high. According to CoinMarketCap, SHIB’s price dropped by over 1% in the last seven days. At the time of writing, Shiba Inu was trading at $0.00002473 with a market capitalization of over $14.57 billion.
On-Chain Metrics and Market Sentiment
AMBCrypto then analyzed the meme coin’s on-chain metrics to see whether the bearish trend would change. Our analysis of Glassnode’s data revealed that after a sharp drop, SHIB’s NVT ratio registered a slight uptick. A hike in the metric suggested that Shiba Inu was overvalued. The bad news was that selling pressure on the meme coin increased over the last week. Santiment’s data revealed that SHIB’s Exchange Inflow increased substantially. The meme coin’s Supply on Exchanges increased, while its Supply outside of Exchanges dropped. This clearly indicated that investors were selling their holdings. Apart from this, investors’ confidence in SHIB also dwindled as its Weighted Sentiment dropped. This indicated that bearish sentiment around it was dominant. Nonetheless, SHIB’s Social Volume remained high, reflecting the meme coin’s popularity.
Technical Indicators and Future Outlook
We then took a look at SHIB’s daily chart to see what the indicators suggested. As per our analysis, SHIB’s MACD indicated that the bulls and bears were at a war to get an advantage over each other. The Money Flow Index (MFI) also had a similar reading, as it went sideways over the last few days. Nonetheless, the Chaikin Money Flow (CMF) indicated that the bulls might turn out to be victorious, as it registered a sharp uptick.
Conclusion
In conclusion, while Shiba Inu has faced resistance and selling pressure, certain indicators suggest potential for a bullish reversal. Investors should keep an eye on key resistance levels and on-chain metrics to gauge future price movements. The meme coin’s popularity remains high, but market sentiment and technical indicators will play crucial roles in determining its next move.
