The leading meme coin Shiba Inu has demonstrated impressive gains amid the recent meme coin rally, rising 24% over the past week. At the time of publication, the token is trading at $0.000015, continuing its gains of 4% today.
However, recent activity suggests that this upward momentum may be slowing down. Profit-taking has begun, and technical indicators show signs of weakening demand for the altcoin.
SHIB is facing increased bearish pressure
One of the main indicators of SHIB used to assess market momentum, the Bollinger Trend (BBTrend), has started to show a decline.
The histogram bars of this indicator have gradually decreased in size over the past few days, signaling a sustained decline in buying pressure in the meme coin market. BBTrend indicates when an asset experiences excessive upward or downward movement. When the size of its green bars decreases, it indicates a weakening of buying momentum.
This could diminish the upward price movement of SHIB. If the trend continues, the meme coin risks a potential pullback or consolidation in the short term.
Additionally, since May 6, there has been a noticeable increase in demand for short positions in SHIB. According to Coinglass, the Long/Short ratio for the token has returned to values below one since then, indicating a growing preference for short bets. At the time of writing, this ratio stands at 0.98. When traders increase their interest in short positions in this way, it indicates a lack of confidence in the token's ability to maintain its upward trend. The increase in short positions suggests that investors are preparing for a potential downturn, confirming the likelihood of a price decline in the near future.
SHIB Considers the Possibility of a Pullback
The decline in the Chaikin Money Flow (CMF) indicator for the token underscores the decreasing buying pressure among SHIB traders. This momentum indicator has a downward trend and is attempting to break below the zero line.
A break below the zero line would confirm a negative shift in the market trend. This could lead to SHIB losing some of its recent gains and falling to $0.000010. On the other hand, if the price of SHIB maintains its upward trend, it could trade at a multi-month high of $0.000019.#BinanceAlphaAlert #BinanceSquare #Write2Earn #TradeStories #Binance $SHIB