Shiba Inu (SHIB) Bullish Future Is Questioned Now

Shiba Inu is trying to prolong its most recent comeback, but the way the market is currently structured raises serious concerns about whether SHIB has enough momentum to create a long-term bullish trend. Although the token has recovered from its August lows, a number of technical barriers are still directly above the price. 

Shiba Inu’s market structure

SHIB has gained about 3% in the past day and is currently trading at about $0.00000535. More significantly, the asset is now above the moving average cluster around $0.00000500–$0.00000507. As of right now, this region serves as the primary support zone. Bulls have a reasonably clear level to defend thanks to the rising trendline from the August bottom. 

But SHIB has already shown that it is hard to keep up the momentum above $0.00000540. The token briefly moved toward $0.00000620 during the August rally, but sellers fiercely opposed the move. Before SHIB can even think about retesting that prior peak, there will be another significant resistance level created by the major long-term moving average, which is currently located around $0.00000568.

 Furthermore, momentum does not offer a clear indication of bullishness. SHIB is above the neutral 50 level but far from an extreme momentum reading, as the daily RSI is close to 57.6. To put it another way, buyers currently have an advantage, but not enough to support an explosive continuation. 

Shiba Inu’s spot flows turn negative

The situation becomes more intriguing when looking at spot flows. Over the course of eight hours, SHIB recorded negative net spot flows of about $271,000, whereas the four-hour figure was about negative $210,000. Persistently negative net flows may be a sign that tokens are leaving exchanges, which lowers the supply that can be sold right away. 

These numbers, however, are still insignificant in comparison to SHIB’s approximately $3.16 billion market capitalization, and as a result, they are unable to independently bolster a bullish thesis. Activity in futures is likewise uneven. 

Open interest differs greatly across exchanges, and 24-hour liquidations are still comparatively small at about $112,000. As a result, SHIB is still recovering rather than experiencing a definitive bullish breakout. 

While breaking $0.00000568 could significantly strengthen the improving structure, holding $0.00000500 would maintain it. However, losing $0.00000500 would call into question the existing ascending structure and put SHIB at risk of making another move in the direction of the $0.00000480–$0.00000440 region.