SHIB traded above a key demand zone, with technical indicators hinting at a potential short-term price reversal.
Oversold RSI and rising exchange inflows may support bullish momentum, even as Active Addresses and network activity declined.
Shiba Inu’s [SHIB] price hovered just above the $0.00001413 demand zone, at press time, following a rejection from the recent local high at $0.00001764.
While the pullback raised some eyebrows, the price action is still showing bullish structure, for now.
Source: TradingView
The $0.00001413 level has proven to be a strong demand zone historically. In fact, price bounced from this zone in past cycles, signaling buyer interest.
SHIB stochastic RSI suggests a potential rebound
Adding weight to this outlook is the behavior of SHIB’s stochastic RSI.
As of writing, the RSI was approaching an oversold region, which is typically interpreted to indicate that price recovery is near. This action is by the expectation that the current demand zone can trigger a reversal.
In the past, deeply oversold stochastic RSI levels have preceded price recoveries, especially when paired with solid support zones. This convergence of technicals gives SHIB a real shot at recovery soon.
Rising inflows versus falling network activity
Having said that, network data tells a different story.
According to CryptoQuant, Active Addresses have steadily declined since the 11th of May, dropping from over 5,000 to nearly 3,200.
A dip in active wallets often signals fading demand or cooling retail participation.
Source: CryptoQuant
Interestingly, this SHIB bearish sentiment is being countered by a sharp spike in Exchange Inflows over the last 24 hours. The inflow could suggest that traders are positioning for potential price action.
While exchange inflows are not inherently bullish, in this context, paired with the demand zone and RSI reading, they may indicate an accumulation rather than sell pressure.
Source: CryptoQuant
Can technicals overpower weak fundamentals?
The current setup is a tug-of-war between bullish technical signals and bearish network activity. Price action, for now, seems more responsive to the positive on-chain developments.
As long as SHIB keeps holding the $0.00001413 support zone, the path of least resistance may remain to the upside.
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