Shiba Inu Price: Bearish Daily Setup Explained
Trading Edge Pro flags a bearish daily setup for SHIB. Momentum, 200-day EMA, exchange outflows and the $0.000005 level at a glance.
Key takeaways
- Trading Edge Pro (SK) has flagged a new bearish setup for Shiba Inu (SHIB) on the daily timeframe.
- Daily momentum is bearish, and price sits 10.4 percent below the 200-day EMA.
- The $0.000005 level now acts as resistance after several closes beneath it.
Shiba Inu trades near $0.00000488 on Sunday evening, down more than four percent in 24 hours. At 00:00 UTC on Sunday, our indicator Trading Edge Pro (SK) flagged a new setup in bearish direction on the daily timeframe. Daily momentum is bearish, weekly momentum neutral.
What the signal means
Trading Edge Pro (SK) is our indicator that condenses trend direction and momentum into setups. A bearish setup on the daily timeframe means the forces on the daily chart currently point down, and not just briefly on the hourly view. A signal is a reading of the situation, not a forecast. How the indicator works is explained in the Trading Edge Pro methodology.
What momentum says
Our momentum snapshot from Sunday evening shows a clear picture on the middle timeframes. Momentum signals a bearish reading on the 4-hour and daily charts. On the 1-hour and weekly timeframes it is neutral. The weekly view has not yet picked up the selling pressure of the daily chart. What momentum measures and how the timeframes interact is covered in the momentum methodology.
The bigger picture
The trend on the higher timeframe is bearish. The daily close sits 10.4 percent below the 200-day EMA, the moving average of the last 200 days. That kind of gap is typical of a market without an uptrend.
Seasonality tells a different story: October ended in the green in four of the past five years, with an average gain of 166.62 percent. That figure is a statistical outlier, though. It hangs on a few very strong years, and the record of $0.00008616 dates from October 27, 2021. According to CryptoTicker, the price now sits about 94 percent below it.
The $0.000005 test goes to the sellers
The round $0.000005 mark changed roles this week. CryptoTicker calculates that the daily close on October 21 was $0.000005152, on October 22 it was $0.000004940, and on October 23 it was $0.000004966. Since October 22, SHIB has not closed a single day above the mark. What was support has become resistance, which the price now approaches from below. On Saturday the price ranged between $0.00000477 and $0.00000508, according to the outlet, and market value stood at $2.88 billion.
The exchange itself also made a move. Binance raised the collateral ratio for SHIB in cross-margin trading from 50 to 60 percent on October 23, as it did for Polygon (POL) and Stellar (XLM). A thousand dollars of SHIB now counts as $600 of collateral instead of $500. According to CryptoTicker, this is more a normalization than a signal. Bitcoin and Ethereum count at 95 percent each, Dogecoin at 80. The liquidation tiers stayed unchanged. The posted collateral also lost about three percent of its value in the same week.
Exchange outflows, burns and a thin ecosystem
Exchange flows paint a mixed picture. Coin-Turk reports, citing CryptoQuant, that net exchange flow stood at minus 95.7 billion SHIB on October 24. More tokens left trading venues than arrived. That is often read as a sign of investors moving holdings into their own wallets. The price still fell about five percent. Outflows alone do not support the price while demand is missing.
Token burns carry little weight as well. After a pause, the tracker Shibburn recorded a single transaction of 20.4 million SHIB on Saturday, as Coin-Turk writes. That equals a 725 percent rise in the daily burn volume, but it is a small amount against a circulating supply of nearly 590 trillion tokens. Elsewhere, CryptoTicker calculates that at the pace of the last 30 days it would take about 714 years to burn one percent of the supply.
Shibarium, the project's own blockchain, offers little tailwind either. According to CryptoTicker, citing DefiLlama data, only $46,453 sits in its protocols, compared with $816,615 a year ago. The broader market adds pressure: Coin-Turk points to concerns over heavy borrowing by technology companies to build AI infrastructure, which have spilled over into crypto.
What is happening with Shiba Inu right now
Several data points line up. The daily trend is bearish, the 200-day line sits far above the price, and the $0.000005 mark has established itself as a hurdle. Against that stand the net outflows from exchanges and the neutral weekly timeframe. What matters next is whether SHIB reclaims the mark or retests the recent lows near $0.00000477.
Entry levels, stops and target zones of the setup, as well as the momentum values of all timeframes, are available to Pro members at /preise. Not investment advice.