Recent price increase of Shiba Inu has drawn investor attention, yet fundamental and technical indicators suggest a potentially short-lived rally.
Shiba Inu Market and Price Increase
This week, Shiba Inu ([SHIB](https://crypto.news/price/shiba-inu/)) rose to $0.000012, with a 24-hour trading volume exceeding $270 million. However, this drive lags behind other meme coins like Dogecoin ([DOGE](https://crypto.news/price/dogecoin/)) and Pepe ([PEPE](https://crypto.news/price/pepe/)).
Ecosystem Issues and Technical Analysis
One reason for the potentially short-lived rally is the inactivity of large holders or "whales," who have been selling their tokens this year. Santiment data indicates that holders between 10 million and 1 billion tokens are on a selling spree, which has pressured SHIB's price. Additionally, open interest in futures has remained weak, standing at just $179 million on Thursday, significantly lower than that of other meme coins like Pepe and Bonk.
Shiba Inu's Future Prospects
Technical analysis indicates that Shiba Inu's price may be on the verge of a downturn, as the Average Directional Index (ADX) has fallen to 18, suggesting a lack of upward momentum. Furthermore, Shiba Inu remains below the super trend indicator and the 50-day and 100-day moving averages. A significant risk is that the ongoing rally could be part of an inverted cup-and-handle pattern, which typically leads to a strong bearish breakdown.
In conclusion, despite the recent rise, Shiba Inu's price may face significant downward pressure in the near term unless there are substantial trend changes.
