Shiba Inu (SHIB) is flashing a warning sign after forming a bear flag pattern. Meanwhile, 2 trillion SHIB tokens have flooded exchanges in one month, highlighting growing bearish pressure towards Shiba Inu price.
SHIB trades at $0.0000143 at press time with $180M in daily trading volumes and an $8.44 billion market cap. In 24 hours, SHIB has fluctuated between a daily low of $0.0000141 and a daily high of $0.0000146 per data from CoinMarketCap.
Shiba Inu Price Flashes Warning Sign as Bear Flag Emerges
Shiba Inu price has flashed a warning sign on the weekly chart after a bear flag pattern emerged. A bear flag usually indicates a brief pause in the downtrend before the bearish momentum continues to push SHIB lower.
This bear flag will be deemed valid if the price of SHIB falls below the lower support level and extends the downtrend. In this case, this meme coin may decline to the 123.6% Fibonacci level of $0.0000050, and this decline could wipe out all the gains that Shiba Inu has made since 2024.
The only way for the Shiba Inu price to invalidate this bearish flag pattern is if it overcomes the resistance at the flag’s upper trendline and rises above $0.000021. Such a move will indicate that buyers are gaining control of the top meme coin, and the momentum is about to become bullish.
However, the RSI invalidates the possibility of a potential bullish reversal with its value of 46, showing that the momentum is currently bearish. This may extend the downward pressure and force Shiba Inu price to drop below $0.00001.
The MACD further supports this outlook as it remains within the negative region. However, the MACD line formed a buy signal after crossing above the signal line, and if buyers step in now, it may invalidate the above bearish thesis and aid an uptrend for this altcoin.
SHIB/USDT: 1-Week Chart
3 Trillion SHIB Floods Exchanges in 1 Month
Besides the bear flag pattern, the rising supply of SHIB on exchanges is also a warning sign that shows Shiba Inu price may enter a steep downtrend. Data from Santiment shows that in just one month, this supply has increased from 139 trillion to $141 trillion, indicating that 2 trillion tokens have entered exchanges.
SHIB supply on exchanges
The tokens deposited on exchanges are worth more than $28 million at the current SHIB price. The implication of this rising supply on price is bearish because of the currently weak demand. This setup further increases the likelihood of SHIB falling to $0.000050 in the near term.
Considering this bearish technical outlook depicted by the bear flag pattern and the increasing SHIB supply, it is clear that the near-term forecast is negative, and traders should anticipate further losses unless an unexpected bullish catalyst emerges.
To discover how Shiba Inu will perform between 2025 and 2030 and if it overcomes the current bearish trends – Read This.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
