"The market remains cautious," a trader commented, observing that Shiba Inu (SHIB) has not yet found clear footing despite efforts to halt its slide. The token currently hovers around $0.00000419, slightly above its recent dip near $0.00000404, showing some resilience but no decisive reversal. Sellers have eased a bit, yet the buyers have not stepped up enough to spark a sustained rally.
Technically, SHIB remains boxed below several important moving averages, including the 20-day, 50-day, 100-day, and 200-day EMAs. The proximity of the 20-day EMA at $0.00000425 and the 50-day EMA near $0.00000454 places pressure on any upward move, while longer-term averages at $0.00000503 and $0.00000607 reflect deeper resistance levels. Price action over the past days has been tight and consolidative, signaling that while the sellers have lost some momentum, bulls lack the strength for a breakout. The Directional Movement Index reflects this uncertainty: with an ADX near 22 and the negative directional indicator above the positive, sellers still hold sway even as their grip diminishes.
Market sentiment is further underscored by a sharp drop in open interest in SHIB futures. After surging above $500 million during bouts of speculative rallies, it has now fallen to under $33 million. This dramatic pullback in leveraged bets points to waning trader confidence and more cautious positioning as the market waits for clearer signals before committing. A rebound in open interest paired with rising prices would suggest renewed enthusiasm, but for now, activity remains subdued.
On the spot market, exchange flows tell a story of gradual stabilisation. While earlier phases saw heavy net outflows, with spikes exceeding $7 million hinting at strong selling pressure, recent data reveal a modest net inflow of about $420,000. This subtle shift might mark the beginning of a longer-term recovery pattern, helped by the ongoing token burns that exceed 41%, which steadily reduce circulating supply and could support price over time. However, SHIB’s path remains uncertain as bulls wrestle against entrenched bearish forces.
