Shiba Inu (SHIB) Price Cools Down After Rising 19% Last Week

Shiba Inu (SHIB) price continues to show strong fluctuations amid mixed technical signals. With a 19.01% increase over the past seven days, SHIB maintains its position as the 2nd largest meme coin by market capitalization, behind only Dogecoin (DOGE).

The coin’s technical analysis paints a mixed picture, with the RSI falling from overbought levels and whale accumulation falling, hinting at the possibility of a short-term correction. However, the strong EMAs still leave room for significant upside, making SHIB’s upcoming price move especially important for traders.

SHIB’s RSI Drops From Overbought Levels

The decline from 85 to 51.8 in SHIB’s RSI (Relative Strength Index) indicates a significant cooling in buying momentum. When RSI reaches 85, it shows that SHIB is overbought, with buyers dominating the market.

The current RSI at 51.8 points to a more balanced market, where buying and selling pressure has balanced after a period of profit-taking by traders.

The historical RSI near 90 when SHIB peaked at $0.000033 represented an overbought condition that was difficult to sustain. The current drop to 51.8 suggests a period of healthy correction rather than a trend reversal, as readings between 40-60 typically indicate stable market conditions.

While this cooling may lead to a short-term price correction, it does not necessarily signal the end of the uptrend. It facilitates more sustainable price growth by preventing market exhaustion.

Shiba Inu Non-Accumulator Whales

The decline in the number of SHIB whales suggests that large investors are taking profits or reducing their holdings amid recent price increases.

Whales, with their ability to strongly influence the market due to their large ownership, often set market trends that smaller investors follow. Their gradual withdrawal shows caution with SHIB’s current valuation.

The decrease from 11,013 to 10,858 wallets holding over 1 billion SHIB represents the loss of 155 large holders in just one month. This distribution of tokens from large holders to smaller holders often creates selling pressure and can signal a weakening of bullish sentiment.

However, this redistribution also means that SHIB ownership becomes more decentralized, which may be healthy for long-term price stability despite short-term selling pressure.

SHIB Price Prediction: Is a 17% Correction Coming?

Shiba Inu price fell below the shortest EMA signaling a loss of momentum in the recent uptrend.

Although the long-term EMAs remain bullish, price action below the fastest moving averages suggests that there is accumulating short-term bearish pressure.

The price is currently at a key threshold with significant price movements possible in either direction. The bearish scenario could push SHIB price down to test the $0.000026 and $0.000023 support levels, representing a 17.8% drop.

Conversely, if the bulls regain the upper hand, SHIB price could retest the recent peak of $0.000033 and potentially rally to $0.000040, providing a 42% upside from current levels. in.

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