The leading meme coin, Shiba Inu (SHIB), has experienced a decline of nearly 10% over the past week, reducing its price to $0.000012.
However, signs of a bullish reversal are emerging as both on-chain and technical indicators suggest a potential recovery in demand for the meme coin.
Activating Shiba Inu supporters amid price decline
On the daily chart, the Chaikin Money Flow (CMF) of SHIB—which tracks the volume-weighted influx and outflow of capital—shows growth, even as the price of the meme coin declines. At the time of writing, the momentum indicator is at 0.02, crossing the neutral zero line. This trend forms a bullish divergence, indicating that buying pressure is quietly increasing in SHIB's spot markets, even as overall market sentiment remains cautious.
On-chain data supports this bullish outlook. According to Santiment, the Network Realized Profit/Loss (NPL) of SHIB remains negative, indicating that most holders are at a loss. Typically, negative NPL means reduced selling pressure, as investors are often reluctant to sell assets at a loss. As a result, longer holding periods may reduce the circulation of SHIB, creating conditions that could support a short-term price recovery for the meme coin.
Moreover, SHIB futures traders share this bullish sentiment. This is reflected in the positive funding rate of the token, which at the time of publication is 0.0082%. The funding rate is a periodic fee paid between traders in perpetual futures contracts to keep the contract price in line with the spot price.
When the rate is positive, long traders pay short traders. This indicates that bullish sentiment dominates among SHIB futures traders, as demand for long positions is higher.
SHIB hints at a recovery to $0.000014
At the time of publication, SHIB is trading at $0.000012. With technical indicators signaling early signs of bullish sentiment, the meme coin could reverse its recent decline and rise to the $0.000014 mark in the short term.
However, to initiate a sustainable recovery, SHIB must first overcome a key resistance level—the 20-day exponential moving average (EMA). This forms a barrier above the token price at $0.000013.
A decisive breakout above the EMA could attract new buying interest in SHIB and confirm a short-term bullish trend reversal. On the other hand, if buying pressure weakens, the price of SHIB could fall to $0.000010.
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