Shiba Inu (SHIB) Price Eyes Recovery Amid Market Uncertainty

Shiba Inu (SHIB) has gained 8% over the past week, attempting to recover from a 25% monthly decline. With a $9.5 billion market cap, SHIB aims to reclaim the $10 billion mark, solidifying its position as the second-largest meme coin after Dogecoin (DOGE). However, mixed indicators suggest uncertainty in its trajectory.

The Relative Strength Index (RSI) peaked at 67.6 before dropping to 51.6, failing to enter the overbought zone. This suggests increased buying momentum that wasn’t strong enough for a breakout. A neutral RSI level implies neither bullish nor bearish dominance, indicating possible price consolidation.

Whale activity has also declined, with the number of SHIB holders possessing at least 1 billion tokens dropping to 10,546—the lowest since July 2022. This downtrend reflects reduced confidence among large investors, potentially impacting liquidity and price stability. Since January 12, whale addresses have fallen from 10,840 to 10,628, hinting at ongoing selling pressure.

Technical analysis shows SHIB’s short-term moving averages remain below long-term ones, reinforcing a bearish outlook. However, narrowing gaps between moving averages suggest potential momentum shifts. If SHIB sustains upward movement, it may challenge the $0.0000172 resistance. A breakout could push prices toward $0.0000196 and possibly $0.0000249.

Conversely, if selling pressure intensifies, SHIB could decline toward $0.0000146 support, with further losses extending to $0.0000116—a 27.9% drop.

For SHIB to sustain recovery, it must regain buying strength and break key resistance levels. Whale accumulation and increased momentum will determine whether SHIB can continue its upward trend or face further downside.