- Bollinger Band Trend shows shrinking momentum.
- Long/short ratio falls below 1.0 as shorts gain.
- Price risks correction toward $0.000010.
Shiba Inu (SHIB) has recorded a sharp upswing over the past week, climbing by 24% 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.
SHIB is at a crossroads between consolidation and breakout
Despite the bearish indicators, SHIB’s price still holds above key support levels.
If broader crypto market sentiment improves or meme coin demand returns, the token could still attempt another leg higher, with the next major resistance seen near $0.000019.
On the downside, if current momentum continues to weaken, SHIB could slide back toward $0.000010 — erasing much of last week’s gains.
The direction will likely depend on how sentiment evolves in the coming days and whether short sellers continue to dominate order books.
