Shiba Inu (SHIB) price is up 8% in the last seven days as it attempts to recover from a 25% decline over the past month. Currently sitting at a $9.5 billion market cap, SHIB is working its way back toward the $10 billion mark, solidifying its position as the second-largest meme coin, only behind Dogecoin (DOGE).
Despite this short-term gain, key indicators show mixed signals, with RSI failing to reach overbought levels and whale holdings continuing to decline. Whether SHIB can sustain its recovery or face further downside will depend on its ability to break key resistance levels and regain stronger buying momentum.
SHIB RSI Failed to Reach 70 Yesterday
Shiba Inu RSI is currently at 51.6 after rising to 67.6 yesterday. This movement shows that buying momentum increased but failed to push RSI into the overbought zone.
The fact that RSI reached its highest level since January 17 without surpassing 70 suggests that SHIB buying pressure was strong but not overwhelming. Now that RSI has dropped back to a neutral level, price action could stabilize before deciding on its next move.
The RSI measures momentum on a scale where values above 70 indicate overbought conditions, and values below 30 suggest oversold levels. With SHIB RSI at 51.6, it is in a neutral zone, meaning there is no clear bullish or bearish dominance.
The failure to enter the overbought zone could mean that upside momentum is fading, which might lead to consolidation or a slight pullback. However, if buying pressure resumes and RSI climbs again, SHIB price could attempt another breakout.
Shiba Inu Whales Reached Its Lowest Level Since 2022
The number of SHIB whales – addresses holding at least 1,000,000,000 SHIB – has dropped to 10,546, the lowest level since July 2022. This decline indicates that large holders have been reducing their positions, which could signal weakening confidence among major investors.
Since whales often influence price action due to the size of their holdings, a sustained decrease in their numbers can indicate lower long-term accumulation and potential selling pressure.
Tracking whale activity is crucial because these large holders can impact liquidity, volatility, and overall market sentiment. The number of Shiba Inu whales started declining heavily in mid-January, falling from 10,840 on January 12 to 10,628 by January 26.
While the pace of this decline has slowed in recent days, the trend is still downward. If this pattern continues, it could limit SHIB price ability to sustain strong rallies, as fewer large investors are accumulating, potentially leading to weaker price support.
SHIB Price Prediction: Will SHIB Continue to Drop?
SHIB EMA lines show that short-term trends remain below long-term ones, maintaining a bearish structure. However, the gap between them has started to narrow compared to previous weeks, which could signal a potential shift in momentum.
If this trend continues, it may indicate that selling pressure is weakening, opening the door for a possible recovery.
If SHIB price can establish an uptrend, it could test the resistance at $0.0000172, a level it recently failed to break. A successful breakout could lead to a push toward $0.0000196, with a strong uptrend potentially reclaiming $0.0000249, its highest price since mid-January.
On the other hand, if bearish momentum strengthens again, SHIB could fall toward the $0.0000146 support. Losing this level could accelerate the decline to $0.0000116, marking a possible 27.9% drop.
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