SHIB declines 2.81% as downside risk prevails near current support: weekly review

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Shiba Inu slips 2.81% this week

Highlights

SHIB trades below key moving averages, reflecting sustained downward momentum with sellers dominating both medium and long-term trends.
Technical signals remain broadly bearish, with negative momentum and no major indicators signaling a near-term rebound.
SHIB is expected to remain range-bound between $0.0000056 and $0.0000062 over the next week, with further declines more likely if support breaks.

Rakuten and Revolut flows drive optimism amid record-low exchange reserves

Rakuten Wallet announced the upcoming listing of Shiba Inu, enabling millions of Japanese retail users access through its digital payment platform. Recent on-chain data also highlights record-low exchange reserves for SHIB, which may point to a potential supply squeeze. Additionally, Revolut reported a single institutional-scale inflow of 1.171 trillion SHIB, equal to $6.94 million, marking the largest exchange movement of the quarter.

Bearish momentum intensifies over the week as SHIB loses key support levels

On the weekly chart, SHIB remains below all key moving averages, with the MA-20 ($0.00000677) now acting as the nearest dynamic resistance. Support is seen at $0.0000056, while immediate resistance aligns with $0.0000062 and the MA-20 level. Weekly momentum signals mostly favor the sellers: MACD issues a Strong Sell, both RSI and Commodity Channel Index reflect bearish momentum, while the ADX is Neutral and Stochastic RSI remains neutral but elevated. Bull/Bear Power and the Awesome Oscillator suggest seller dominance and muted trend intensity; weekly volatility is moderate at 5.57%.

Downside bias expected next week amid momentum weakness and range-bound trading

For the next 7 days, SHIB is expected to trade within the range of $0.0000056 to $0.0000062, with downside risk prevailing based on negative weekly momentum signals. The baseline scenario is for price action to remain range-bound, consolidating near current levels. A bullish break above $0.0000062 could see a short-term recovery attempt towards resistance, but with strong resistance at the MA-20, gains may be limited. Conversely, a push below $0.0000056 may accelerate declines, increasing the likelihood of testing new lows if selling intensifies.

Previously it was reported that prominent market participants have reduced exposure to SHIB amid broader declines in speculative crypto assets. In the current context, traders should monitor for any breakout above $0.0000062, as overcoming this resistance could signal a potential shift in short-term sentiment despite ongoing bearish pressures.

Source of Data: SHIB Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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