Shiba Inu Price: Is SHIB Heading for a Bull Trap?

A recent article from BeInCrypto raises a critical warning for Shiba Inu (SHIB) investors: despite some positive short-term price movements, the meme coin may be walking into a "bull trap." This analysis suggests that the current rally could be a deceptive maneuver before a more significant price correction.

The "Bull Trap" Warning: A Deceptive Rally

The core concern revolves around the Relative Strength Index (RSI), a key momentum indicator. While SHIB's price has shown signs of recovery, the RSI is flashing a bearish divergence. This means that as the price makes higher highs, the RSI is making lower highs, indicating that the buying momentum is weakening. Such a divergence often precedes a price reversal and is a classic signal of a potential bull trap, where traders are lured into buying before a sudden downturn.

On-Chain Signals Reinforce Caution

Beyond the technical charts, on-chain metrics are also sending cautionary signals. The article highlights that the Net Network Growth for Shiba Inu has been steadily declining. This metric measures the number of new addresses interacting with the network. A decreasing number of new participants suggests a lack of fresh capital inflow and waning interest, which further supports the notion that the current rally lacks strong, sustainable backing. Without new users or significant adoption, any price increase is likely to be speculative and short-lived.

Price Outlook: A Critical Juncture for SHIB

The immediate future for SHIB is highly precarious. The article points to a critical resistance level at $0.00001291. If the token fails to decisively break above this level, the bearish divergence could play out, leading to a significant price correction. In such a scenario, SHIB could retrace to lower support levels, potentially erasing recent gains and confirming the bull trap. Conversely, a sustained break above this resistance, accompanied by strong new network growth, would be needed to invalidate the bearish outlook.

📌 Conclusion

Shiba Inu's recent price movements are under intense scrutiny, with strong indicators pointing towards a potential bull trap. The bearish divergence on the RSI and the declining Net Network Growth suggest that the current rally may be a deceptive short-term bounce before a deeper correction. Investors are advised to exercise extreme caution and to closely monitor key resistance levels and on-chain metrics to avoid falling into this potential trap.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.