SHIB Price Rallies 24%, Yet Profit-Taking Hints at Decline

Leading meme coin Shiba Inu has seen impressive gains amid the latest meme coin rally, surging by 24% over the past week. At press time, the coin trades at $0.000015, extending its gains by 4% today. However, recent activity suggests that this upward momentum may be slowing. Profit-taking has begun, and technical indicators show signs of weakening demand for the altcoin. SHIB Faces Growing Bearish Pressure One of SHIB’s primary indicators used to gauge market momentum, the Bollinger Band Trend (BBTrend), has begun to show a decline. The indicator’s histogram bars have gradually shrunk in size over the past few days, signaling a steady decline in buying pressure in the meme coin’s market. The BBTrend indicates when an asset is experiencing excessive upward or downward movement. When the size of its green bars reduces, buying momentum is weakening. This could reduce SHIB’s upward price movement. If the trend continues, the meme coin is at risk of a potential pullback or consolidation in the near term. Moreover, there has been a noticeable uptick in demand for short positions on SHIB since May 6. According to Coinglass, the coin’s Long/Short Ratio has returned values below one since then, indicating a growing preference for short bets. As of this writing, the ratio stands at 0.98. When traders increase short interest like this, it indicates a lack of confidence in the coin’s ability to maintain its upward trajectory. The rise in short positions suggests that investors are preparing for a potential decline, confirming the likelihood of a price dip in the near future. SHIB Eyes Potential Pullback The coin’s falling Chaikin Money Flow (CMF) highlights the dropping buying pressure among SHIB traders. This momentum indicator is trending downward and attempting to break below the zero line. A breach of the zero line would confirm the negative shift in the market trend. This could cause SHIB to erase some of its recent gains and fall toward $0.000010. On the other hand, if SHIB’s price maintains its uptrend, it could trade at a multi-month high of $0.000019. Disclaimer In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated. Source: https://beincrypto.com/shib-price-skyrockets-profit-taking-rises/