Shiba Inu (SHIB) Drops 10% but Technical Indicators Suggest a Potential Rebound
Shiba Inu Price Falls 10%, but Bullish Divergence Sparks Hope for Recovery
Shiba Inu (SHIB), the popular meme-based cryptocurrency, has seen a nearly 10% decline over the past week, bringing its price down to $0.000012. Despite this downward movement, both technical and on-chain data suggest that a price recovery may be on the horizon.
Market Pressure Meets Quiet Optimism
While SHIB’s price has faltered, some technical indicators point to a potential shift in momentum. On the daily chart, the Chaikin Money Flow (CMF)—a key indicator that gauges the flow of capital in and out of an asset—has started trending upward. Currently sitting at 0.02, the CMF has crossed above the neutral zero line, forming a bullish divergence. This pattern typically signals increasing buying pressure, even if the broader market remains cautious.
On-Chain Metrics Back Up Technical Strength
On-chain analysis provides additional reasons for optimism. According to blockchain analytics platform Santiment, SHIB's Network Realized Profit/Loss (NPL) remains in negative territory. This suggests that many holders are currently at a loss and may be less inclined to sell their holdings. Such behavior tends to reduce immediate selling pressure and can contribute to a lower circulating supply—conditions that often precede short-term price rebounds.
Futures Market Reflects Bullish Sentiment
Sentiment among SHIB futures traders appears to be aligned with this optimistic outlook. The funding rate for SHIB perpetual futures contracts is currently positive, at 0.0082%. A positive funding rate implies that traders are willing to pay a premium to hold long positions, indicating that expectations for a price increase are gaining traction.
Path to Recovery: Key Levels to Watch
At the time of writing, SHIB trades at $0.000012. If the bullish indicators hold, analysts suggest that the token could target the $0.000014 range in the near term. However, the meme coin must first break above its 20-day Exponential Moving Average (EMA), which now acts as a critical resistance level around $0.000013.
A successful break above this EMA could draw renewed buying interest, potentially confirming a short-term trend reversal. Conversely, if bullish momentum fades, SHIB may face further declines, possibly testing support around $0.000010.