Shiba Inu has endured a prolonged period of decline, experiencing significant losses over the past eight months. Despite this bearish trend, conflicting signals are emerging, with some analysts forecasting a substantial recovery while others highlight persistent downward momentum, creating a complex outlook for the popular memecoin.
Glimmers of Optimism: On-Chain and Futures Data
Crypto analyst Joao Wedson from Alphractal points to crucial on-chain data suggesting Shiba Inu is entering an accumulation phase. The "Realized Cap Impulse" metric has turned positive, typically indicating fresh capital flowing into the asset. Furthermore, Shiba Inu recorded a positive delta for two consecutive days, with buy volume ($1.2 trillion) surpassing sell volume ($1.1 trillion) within a recent 48-hour period, signaling renewed buyer interest. Based on these insights, Wedson projects a potential 125% rally for SHIB, which could see its price surge to $0.000028 if demand experiences a significant recovery. The bullish sentiment extends to the futures market, where Shiba Inu's Funding Rate turned positive after several days, suggesting increased capital inflow from investors opening new long positions. The Long/Short Ratio also jumped to 1.169, with longs dominating, indicating that participants are actively betting on a price rebound.
Persistent Headwinds: Technical Indicators Show Caution
Despite these optimistic projections, a closer look at technical indicators reveals a strong prevailing downward momentum for Shiba Inu. AMBCrypto's analysis shows the memecoin's Relative Strength Index (RSI) declined to 44, entering bearish territory. Similarly, the Directional Movement Index (DMI) dipped from 26 to 16, further confirming a robust bearish trend. These indicators suggest that if buyers continue to remain on the sidelines, a near-term recovery might be unlikely. Instead, a further drop to $0.0000115 remains a possibility. The predicted 125% rally, while significant, is currently viewed as a long-term prospect rather than an immediate one, underscoring the market's current indecision and the need for a definitive shift in demand to spur a genuine price reversal.
