Shiba Inu’s price rises 24% in 7 days, but short interest implies a risk of reversal

Shiba Inu (Shib) has registered a strong rebound during the last week, up 24% in the middle of the renewed appetite of investors by meme coins.

At the time of writing this article, the Altcoin quotes at 0.00001606 dollars, rising 3% more in the day.

Fountain: Coinmarketcap

However, several market indicators suggest that the rebound can be losing strength.

Traders are making more and more bets against the price of Token, and multiple trend signs now point to a weakening of the bullish impulse.

These developments could push Shib to a period of consolidation or even cause a corrective movement if current conditions persist.

Bbtrend shows a decrease in the bullish impulse

One of the most observed indicators for the movement of Shiba Inu’s price is the trend of the Bollinger band (Bbtrend), which measures the volatility and strength of the trend.

Although Shib has continued to rise in the short term, Bbtrend’s contraction suggests that the purchase pressure that fed his recent rebound is beginning to fade.

A loss in Bbtrend’s force often precedes a price consolidation phase or a decline down.

If this pattern continues, Shib could lose a part of his recent profits and fight to maintain his current valuation range.

Traders prefer short positions as trust falls

Others Coinglass data They show that traders are becoming more and more bassists.

Since May 6, Shib’s long/short relationship has remained below 1.0, with the last reading at 0.96.

This relationship compares the number of long positions (betting on the price will rise) with short positions (betting on).

A value below 1.0 suggests that more traders are selling in short Shib than long.

This growing short interest shows a decrease in market confidence.

He suggests that investors believe that Shib may not maintain their recent bullish trajectory and are positioning themselves for down correction.

The CMF indicator indicates a decrease in purchase pressure

Chaikin Money Flow (CMF), another impulse indicator that tracks the flow of money that enters and leaves an asset, also supports the bassist narrative.

Shib CMF has been constantly falling and is currently close to breaking below the zero neutral line.

If the CMF falls below zero, it would indicate that the sales pressure has exceeded the purchase pressure, often precursor to a price drop.

Such change could push the price of Shib down in the short term, particularly if combined with the increase in short interest and the weakening of Bbtrend’s signals.

Shib is at a crossroads between consolidation and breakdown

Despite the bearish indicators, Shib’s price still remains above the key support levels.

If the feeling of the cryptocurrency market in general improves or returns the demand for meme coins, the token could still try another rise section, with the next important resistance near USD 0.000019.

On the negative side, if the current impulse continues to weaken, Shib could go back to USD 0.000010, erasing much of last week’s profits.

It is likely that the address depends on how feeling evolves in the next few days and whether short vendors continue to dominate orders books.