The leading meme coin, Shiba Inu (SHIB), has fallen nearly 10% over the past week, dragging its price down to $0.000012.
However, signs of a bullish reversal are beginning to emerge, with both on-chain and technical indicators hinting at a potential resurgence in demand for the meme coin.
Shiba Inu Bulls Stir as Price Slumps
On the daily chart, SHIB’s Chaikin Money Flow (CMF)—which tracks the volume-weighted inflow and outflow of capital—has been trending upward, even as the meme coin’s price has declined. As of this writing, the momentum indicator stands at 0.02, crossing above the neutral zero line.
This trend forms a bullish divergence, suggesting that buying pressure is quietly building behind in the SHIB spot markets, even as broader market sentiment remains cautious.
On-chain data supports this bullish outlook. Per Santiment, SHIB’s Network Realized Profit/Loss (NPL) remains negative, indicating that most holders are underwater.
Typically, a negative NPL means reduced selling pressure, as investors are often reluctant to offload assets at a loss. The resulting longer holding periods can reduce SHIB’s circulating supply, creating conditions that may support a short-term price rebound for the meme coin.
Moreover, SHIB futures traders share this bullish sentiment. This is reflected by the coin’s positive funding rate, which is 0.0082% at press time.
The funding rate is a recurring fee paid between traders in perpetual futures contracts to keep the contract price in line with the spot price.
When the rate is positive, long traders are paying short traders. This indicates that bullish sentiment is dominant among SHIB futures traders as demand for long positions is higher.
SHIB Hints at Rebound Toward $0.000014
At press time, SHIB trades at $0.000012. With technical indicators flashing early bullish signals, the meme coin could reverse its recent downtrend and rally toward the $0.000014 mark in the short term.
However, to initiate a sustained recovery, SHIB must first overcome a key resistance level—the 20-day Exponential Moving Average (EMA). This forms a barrier above the coin’s price at $0.000013.
A decisive break above the EMA could attract renewed buying interest in SHIB and confirm a short-term bullish trend reversal.
On the other hand, if buying pressure wanes, SHIB’s price could fall to $0.000010.
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Disclaimer
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