Although Shiba Inu (SHIB) is showing initial signs of recovery, bouncing back from recent lows as the RSI indicator rises and important support levels hold, this memecoin still struggles to break above the RSI 51 mark and continues to face pressure from bearish EMAs.
At the same time, whale activity has continuously declined, indicating that the confidence of large holders is weakening and raising questions about long-term support capability. With the price stuck between major support and resistance zones, SHIB's next move is likely to depend on whether the upward momentum can be reinforced or once again weakened.
SHIB's upward momentum is improving, but the RSI rejection signals caution.
The momentum of SHIB is showing signs of change, with the Relative Strength Index (RSI) rising to 47 from 30.18 just three days ago, signaling a recovery from an oversold condition.
However, it is noteworthy that SHIB was unable to break above the RSI 51 mark yesterday, indicating that bullish momentum remains fragile at this time.
Although the recent recovery reflects a decrease in selling pressure, it has not pushed into a clearly bullish zone, demonstrating the ongoing hesitation of buyers.
RSI is a momentum oscillator that measures the speed and strength of price changes, helping to identify overbought or oversold conditions.
Values below 30 indicate oversold conditions, while values above 70 indicate overbought regions. With SHIB's RSI currently at 47, the asset remains in a neutral zone – neither overextended nor deeply undervalued.
The position in the range allows for a breakout or reversal, depending on how price action develops around the current resistance and support levels.
The decline in the number of SHIB whales signals potential weakness ahead.
The number of Shiba Inu whales (wallets holding at least 1 billion tokens) has gradually decreased since June 11, from 10,259 to 10,231.
Although the drop seems modest, it reflects a steadily narrowing involvement of large investors and could signal weakening confidence among major players.
The ongoing decline in whale activity often correlates with weak support during volatile periods, making SHIB more susceptible to price fluctuations.
Monitoring whale behavior is crucial as large holders can impact price volatility through sudden buy or sell orders. An increase in the number of whales often indicates accumulation activity and long-term confidence, while a decrease could imply distribution or withdrawal.
With the number of SHIB whale wallets decreasing, this may indicate that large investors are taking profits or hedging against further downside risk.
If this trend continues, it could put additional pressure on SHIB's price, especially if retail investor interest does not offset the outflow from whales.
SHIB is holding the key support level, but the bearish EMA is still controlling the bulls.
The price of Shiba Inu recently tested and held important support at $0.0000119, creating a temporary foundation despite broader bearish signals.
The Exponential Moving Averages (EMA) of the token are still in a bearish trend, with short-term EMAs lying below long-term EMAs – indicating continued downward pressure.
If this support level is retested and fails to hold, SHIB could slide down to the next significant level at $0.0000114, potentially opening the door for deeper downside.
However, if market sentiment changes and SHIB manages to gain upward momentum, the price could challenge the immediate resistance level at $0.0000128.
A breakout above this level would trigger a bullish movement towards $0.0000136, and if buying pressure continues, a push up to $0.0000146 could also occur.
Currently, SHIB is stuck between important support and resistance zones. A clear breakout in either direction could shape its short-term trajectory.
