Shiba Inu Faces Resistance as Bullish Momentum Weakens

Shiba Inu (SHIB) has experienced a notable increase over the past week, boosting its market cap and maintaining its position as the second-largest meme coin after DOGE. However, waning bullish momentum suggests the possibility of consolidation or a price reversal in the near term. The Relative Strength Index (RSI) indicates moderate buying pressure, showing potential for further gains if momentum strengthens.

Currently, SHIB’s RSI sits below the overbought zone, signaling a continued bullish phase but also suggesting caution as selling pressure gradually rises. A decline in the Average Directional Index (ADX) reveals a weakening uptrend, even though the metric remains above the threshold indicating a strong trend. Meanwhile, directional indicators reflect growing bearish sentiment, with buying pressure decreasing and selling pressure climbing steadily.

If this balance continues to shift, SHIB could face a slowdown in its upward movement, potentially leading to price consolidation or even a correction. On the other hand, a potential golden cross formation—a technical bullish indicator—could push SHIB to test higher resistance levels and sustain its positive momentum.

The key lies in whether buyers can regain control and maintain upward pressure. If they succeed, SHIB could test new resistance points and extend its gains. However, failure to sustain momentum may result in a downward correction, with sellers gaining dominance and testing lower support levels.

Despite the decline in ADX and increased selling pressure, SHIB’s trend still leans positive. Traders and investors are closely watching these key technical indicators to gauge the next move. If the current trajectory holds, SHIB might see a continuation of its upward trend. However, caution remains as market sentiment can shift quickly, especially with increased volatility in the meme coin sector.

For now, SHIB remains in a fragile state, balancing between potential gains from bullish signals and risks posed by weakening momentum and rising sell pressure. Investors will need to monitor the RSI, ADX, and price behavior closely to anticipate the coin’s next direction.