Recently, Shiba Inu (SHIB) has experienced significant fluctuations, reflecting the overall market context and changes in investor sentiment. This meme coin is gradually leaning towards a downtrend as weakening signals become apparent. The increase in circulating supply along with continuous selling pressure has contributed to rising bearish pressure, causing many investors to be concerned about the short-term outlook for SHIB.
Shiba Inu signals bearish
In recent days, Shiba Inu has recorded a significant increase in circulating supply. Data shows that trading volume – a measure of how many tokens move between addresses – has surged. Typically, when circulation increases sharply, it is a sign that investors are transferring tokens to sell, creating bearish pressure.
In the past, similar acceleration in trading speed has often been accompanied by strong price adjustments, and this scenario may repeat itself with SHIB at the present time. This movement reflects the unstable psychology of investors as they react to the overall weakening trend of the cryptocurrency market. The more tokens are exchanged, the greater the selling pressure, causing SHIB's price to continue facing additional downside risks.
Not only on-chain data, but technical indicators are also supporting the bearish scenario. Specifically, Shiba Inu's MACD line has seen a bearish crossover, indicating that market momentum is leaning towards the sellers. This reflects that selling pressure is overwhelming buying pressure in the short term.
However, it should also be noted that this signal seems to be weakening rapidly, indicating that the market is very volatile and unpredictable. The sudden change in price momentum makes it difficult for investors to determine the next trend of SHIB, while increasing short-term risks.
SHIB price seeks important support
Currently, SHIB is trading around $0.0000126 and is trying to maintain the important support level at $0.0000125. However, in the context of increasing circulating token volume and a weakening overall market, preserving this support level is not easy. Existing selling pressure is making it difficult for SHIB to recover quickly.
The Parabolic SAR indicator is confirming a downtrend, implying the possibility of the price continuing to slide. If Shiba Inu cannot hold the level of $0.0000125, this coin could drop significantly to the area of $0.0000118, entering a new accumulation and consolidation phase. This scenario is likely to prolong the 'bearish range' state, reducing investor interest.
On the contrary, if SHIB successfully defends the current support level, the market could witness a bounce. At that point, the price has a real chance of heading towards the area of $0.0000139. A decisive recovery of the support level will invalidate the bearish argument, while reviving confidence in the possibility of a short-term recovery.