Shiba Inu (SHIB) Has Recorded a Sharp Upswing

Shiba Inu (SHIB) price has seen a strong upswing in recent times, climbing by 24% over the past week amid renewed investor appetite for meme coins.

At the time of writing, the altcoin trades at $0.00001606, rising a further 3% on the day.

However, several market indicators suggest that the rally may be losing steam.

Traders are increasingly placing bets against the token’s price, and multiple trend signals now point to weakening bullish momentum.

These developments could push SHIB into a period of consolidation or even spark a corrective move if current conditions persist.

BBTrend shows a decline in upward momentum

One of the most widely watched indicators for Shiba Inu’s price movement is the Bollinger Band Trend (BBTrend), which measures volatility and trend strength.

While SHIB has continued to rise in the short term, the shrinking BBTrend suggests the buying pressure that fuelled its recent rally is beginning to fade.

A loss in BBTrend strength often precedes either a price consolidation phase or a downward retracement.

If this pattern continues, SHIB could lose a portion of its recent gains and struggle to maintain its current valuation range.

Traders favour short positions as confidence dips

Further data from Coinglass shows that traders are turning increasingly bearish.

Since May 6, SHIB’s long/short ratio has remained below 1.0, with the latest reading at 0.96.

This ratio compares the number of long positions (betting the price will rise) to short positions (betting it will fall).

A value below 1.0 suggests that more traders are shorting SHIB than going long.

This growing short interest highlights a decline in market confidence.

It suggests that investors believe SHIB may not sustain its recent upward trajectory and are positioning for a downside correction.

CMF indicator signals declining buying pressure

The Chaikin Money Flow (CMF), another momentum indicator that tracks the flow of money in and out of an asset, also supports the bearish narrative.

SHIB’s CMF has been falling steadily and is currently close to breaking below the neutral zero line.

If the CMF dips below zero, it would indicate that selling pressure has overtaken buying pressure, often a precursor to a price decline.

Such a shift could push SHIB’s price lower in the near term, particularly if combined with rising short interest and weakening BBTrend signals.

Overall, these technical indicators suggest that the steam may be slowly coming off of Shiba Inu’s recent rally.

With traders becoming increasingly bearish and several trend signals now showing signs of weakness, the meme coin token could be setting up for a period of consolidation or even a corrective move in the days ahead.