Why is the price of Shiba Inu (SHIB) weak despite positive signals?

Although Shiba Inu (SHIB) is showing initial signs of bounce back, rising from recent lows as the RSI indicator bounces up and important support levels are held, this memecoin still fails to surpass the RSI threshold of 51 and continues to face pressure from bearish EMA lines.

At the same time, the activity of whales has continuously decreased, indicating that the confidence of large holders is weakening and raising questions about the long-term support capability. With the price stuck between major support and resistance levels, the next move of SHIB is likely to depend on whether the upward momentum can be strengthened or once again weaken.

The uptrend of SHIB has improved, but the RSI being rejected signals the need for caution

The momentum of SHIB is showing a change, with the Relative Strength Index (RSI) rising to 47 from a level of 30.18 just three days ago, signaling a bounce back from near oversold conditions.

However, it is noteworthy that SHIB was unable to break above the RSI level of 51 yesterday, indicating that the bullish momentum remains fragile at this time.

Although the recent bounce back reflects a decrease in selling pressure, it cannot push into a clearly bullish zone, demonstrating the ongoing hesitation of buyers.

The RSI of SHIB | Source: TradingViewThe RSI is a momentum oscillator that measures the speed and change of price movements, helping to identify overbought or oversold conditions.

Values below 30 indicate oversold conditions, while values above 70 indicate overbought regions. With the RSI of SHIB currently at 47, this asset remains in the neutral zone – neither overextended nor deeply bearish.

The position within the allowed range for a breakout or reversal, depending on how the price action develops around the current resistance and support levels.

The decrease in the number of SHIB whales signals potential weakness ahead

The number of Shiba Inu whales ( holding at least 1 billion tokens ) has gradually decreased since June 11, from 10,259 to 10,231.

Although the decline seems modest, it reflects a steady shrinkage in participation from large investors and may signal weakening confidence among major players.

The continuous bearish trend of whale activity often correlates with weak support during volatile periods, making SHIB more susceptible to price fluctuations.

Address holding at least 1 billion SHIB | Source: SantimentTracking the behavior of whales is very important because large holders can affect 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 may 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 bearish risks.

If this trend continues, it could put more pressure on the price of SHIB, especially if retail investor interest does not offset the outflow of funds from whales.

SHIB holds the main support level, but the bearish EMA still controls the bulls

The price of Shiba Inu has recently tested and held a crucial support level 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 not held, SHIB could slide down to the next important level of $0.0000114, potentially opening the door for deeper bearishness.

SHIB Price Chart | Source: TradingViewHowever, if market sentiment changes and SHIB manages to gain momentum, the price may challenge the immediate resistance level at $0.0000128.

A breakout above this level will trigger a price increase towards $0.0000136, and if buying pressure continues, even a push up to $0.0000146 could occur.

Currently, SHIB is stuck between important support and resistance zones. A clear breakout in either direction could shape its short-term trajectory.

Dinh Dinh