Shiba Inu (SHIB) has posted a strong rebound over the past week, gaining 24% amid renewed investor appetite for meme coins.
At the time of writing, the altcoin trades at $0.00001606, up another 3% on the day.
Several market indicators, however, suggest the rally may be losing steam.
Traders are increasingly placing bets against the token’s price, and a number of trend signals now point to weakening upward momentum.
If these conditions persist, SHIB could enter a consolidation phase or even trigger a corrective move.
BBTrend signals declining upward momentum
One widely watched measure of Shiba Inu’s price action is the Bollinger Band Trend (BBTrend), which gauges volatility and trend strength.
Although SHIB has continued to climb in the short term, the contracting BBTrend indicates that the buying pressure that fueled the recent rally is beginning to fade.
A loss of BBTrend strength often precedes either a period of price consolidation or a downside pullback.
If the pattern continues, SHIB may lose a portion of its recent gains and struggle to hold its current valuation range.
Traders favor shorts as confidence weakens
Data from Coinglass shows traders growing more bearish on SHIB.
Since May 6, SHIB’s long/short ratio has remained below 1.0, with the latest reading at 0.96.
This ratio compares the number of long positions (bets that the price will rise) to short positions (bets that the price will fall).
A value below 1.0 indicates more traders are shorting SHIB than going long.
The rising short interest underscores declining market confidence and suggests investors are positioning for a downward correction rather than continued upside.
CMF indicates falling buying pressure
The Chaikin Money Flow (CMF), a momentum indicator that tracks money flowing in and out of an asset, also supports the bearish narrative.
SHIB’s CMF has trended down and is currently close to breaching the neutral zero line.
If CMF falls below zero, it would signal that selling pressure has overtaken buying pressure — often a precursor to a price drop.
Such a shift could push SHIB’s price lower in the short term, particularly if paired with rising short interest and weakening BBTrend readings.
SHIB stands at a crossroads between consolidation and breakout
Despite the negative indicators, SHIB’s price remains above key support levels for now.
If broader crypto market sentiment improves or demand for meme coins returns, the token could still attempt another leg higher, with the next significant resistance near $0.000019.
Conversely, if the current momentum continues to weaken, SHIB could retreat toward $0.000010 — wiping out a sizable portion of last week’s gains.
The immediate direction will likely depend on how sentiment evolves in the coming days and whether short sellers keep dominating order books.