Price holds key support, SHIB is brewing a new round of explosion.
As of the time of writing, Shiba Inu (SHIB) is stabilizing above the key demand area of $0.00001413, having previously retreated from a local high of $0.00001764. Although the short-term pullback has raised market concerns, the overall trend remains strong and upward from a structural perspective.
This support area has triggered rebounds multiple times in historical cycles, demonstrating strong buyer intent to enter. The price continues to hold above this level, leaving ample space for a potential bullish counterattack.
The stochastic RSI is about to rebound off the bottom, with technical indicators strongly bullish.
From a technical indicator standpoint, SHIB's stochastic RSI has approached the oversold zone. This signal is often seen as a precursor to an imminent price reversal, especially in the context of overlapping strong support areas, making it more credible.
Historically, SHIB has often accompanied strong price rebounds in similar technical formations. This 'technical resonance' is reappearing now, providing strong support logic for the bulls.
On-chain data sends warning signals, with a sharp drop in activity raising concerns.
However, on-chain data appears relatively tepid. According to CryptoQuant data, the number of active addresses for SHIB has significantly decreased from over 5,000 since May 11 to about 3,200, indicating a waning enthusiasm among retail users.
The decline in the number of active wallets usually indicates weak market demand or an increase in wait-and-see sentiment, which sharply contrasts with the positive signals released from the technical perspective.
Exchange inflows surge, are the main players quietly positioning?
It is worth noting that in the past 24 hours, SHIB's exchange inflow has surged significantly. Although such capital flows are typically seen as a precursor to selling pressure, when combined with the current technical support and RSI indicators, it may also imply that capital is quietly entering the market.
If these inflows are from proactive positions rather than liquidation sell-offs, it suggests that some capital is betting on a rebound or is preparing for the next breakout.
The tug-of-war between bulls and bears intensifies, with fate hinging on key support.
Currently, SHIB is at a critical juncture where technicals and on-chain data are at odds. Although the network's fundamentals are performing mediocrely, price action suggests that the market may prioritize technical signals.
As long as SHIB holds the ironclad bottom area of $0.00001413, the upward momentum remains dominant. If network activity begins to rebound in the future, it will further enhance expectations for a rebound.
