Shiba Inu circulation spikes, bearish signals emerge with rising token velocity

Shiba Inu (SHIB), the meme-inspired cryptocurrency, is under pressure as recent market data shows increased circulation of tokens and a shift in technical indicators.

The coin, currently priced at $0.00001244, has seen a rise in velocity, meaning more tokens are moving across different wallets, which often signals selling activity.

Source: CoinMarketCap

This behaviour has historically preceded declines in SHIB’s price, suggesting that investor caution is growing.

At the same time, technical patterns such as the Parabolic SAR and the MACD are pointing towards bearish momentum, raising questions about the coin’s ability to hold critical support levels in the coming sessions.

Shiba Inu circulation rises with selling signals

Data from recent sessions highlights a surge in SHIB’s token velocity, which measures how frequently coins change hands.

This uptick suggests holders are increasingly moving their assets, often a precursor to selling pressure.

Similar movements in the past have coincided with price drops, reflecting how market participants react when broader sentiment weakens.

With circulation rising at the same time that crypto markets show broader weakness, Shiba Inu’s price appears vulnerable to further downside and could struggle to maintain stability without stronger demand from new entrants.

MACD shows bearish crossover for Shiba Inu

Technical analysis indicators are reinforcing the cautious outlook. The Moving Average Convergence Divergence (MACD) has crossed into bearish territory, indicating that selling momentum is overtaking buying strength.

However, analysts note that this bearish crossover has been losing strength quickly, which reflects the high volatility currently surrounding SHIB.

The weakening crossover suggests uncertainty in price direction, leaving SHIB exposed to rapid swings as traders attempt to interpret signals in real time.

Such inconsistent signals add to uncertainty, making it difficult for investors to determine whether a short-term rally or deeper pullback is more likely.

Support level tested at $0.00001252

Shiba Inu’s immediate focus is on holding the $0.00001252 support line. Failure to maintain this level could send the price down to $0.00001182, a move that may lead to a period of consolidation.

On the other hand, a rebound from $0.00001252 could push the coin back up to $0.00001393, invalidating the bearish pattern and sparking renewed buying interest.

This makes the current trading range crucial for both short-term traders and long-term holders, monitoring price stability.

Traders are closely watching order book movements, as significant liquidation clusters could influence whether this support holds or breaks.

Downtrend confirmed by parabolic SAR

The Parabolic SAR, another technical tool used to track momentum and direction, shows that Shiba Inu remains in a downtrend.

This aligns with the selling pressure triggered by increased circulation and the cautious outlook provided by the MACD. Unless SHIB secures its key support level, the downtrend is likely to persist, keeping the coin in a bearish zone.

A potential bounce from support could offer temporary relief, but for now, SHIB remains at risk of extended losses, particularly if overall market conditions remain fragile.