SHIB is struggling to hold gains above $0.000016, raising the risk of a further pullback | Credit: Hameem Sarwar
Share
Key Takeaways
Shiba Inu’s price has broken below the upper line of an ascending channel
Distribution outweighs accumulation, reinforcing the thesis around a stalled rally.
SHIB’s recovery depends on renewed buying pressure and broader market strength.
Shiba Inu (SHIB) may be nearing the end of its recent rally. The memecoin has jumped 25% over the past week, but the last 24 hours show signs of fading momentum.
SHIB has slipped out of its ascending channel—a potential warning sign for bulls. Here’s what that could mean for SHIB’s short-term price action.
SHIB Takes a Step Back
As of this writing, the SHIB price is $0.000016. This is a slight drop from the memecoin’s rally, which saw it hit $0.000018 earlier in the week.
During the uptrend to $0.000018, SHIB price traded within an ascending channel and briefly broke past the upper trendline. But now, the cryptocurrency has dropped below the upper trendline.
This drop indicates that bulls are losing control of the memecoin’s price action. Interestingly, the drop also occurred as SHIB seems to have hit the resistance that historically drove the price down without intense buying pressure.
The Chaikin Money Flow (CMF) has dropped below the zero signal line to validate this. This decline under the threshold indicates that SHIB distribution has outpaced accumulation.
Should the trend remain the same, SHIB’s price might find it challenging to breach $0.000018. If this happens, the psychological resistance at $0.000020 could also be a tough nut to crack.
In addition, CCN also examined the SHIB/USD 4-hour chart to get a clearer picture of its short-term potential. According to the image below, the red line of the Supertrend has risen above SHIB’s price.
The Supertrend indicator flashes a buy or sell signal while measuring the trend. When the green line is below the price, the trend is bullish.
However, when the indicator’s red line is above the price, it indicates resistance. In addition, the Relative Strength Index (RSI) has declined after initially rising to an overbought reading.
The RSI measures momentum and tells when a cryptocurrency is overbought or oversold. When the rating is below 30, it is oversold.
On the other hand, an RSI reading above 70.00 means it is overbought. Since the reading has dropped, SHIB’s bullish momentum is fading.
Due to this, the meme coin’s market value is likely to experience extended consolidation or a notable drop. In terms of its short-term targets, SHIB might slide below the 0.618 golden ratio around $0.000015.
If that happens, the cryptocurrency’s next move could be a decline toward $0.000012. However, if momentum becomes bullish, this forecast might be invalidated.
In that scenario, SHIB’s price could bounce above $0.000018 and rise toward $0.000025 if the broader market conditions improve.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
