Shiba Inu’s December 2024 Downtrend Could End As Inflows Rise

Shiba Inu has faced significant challenges in recent months, failing to break free from its ongoing downtrend. Despite the altcoin’s struggles, recent investor activity indicates a potential shift. 

Increased capital inflows into Shiba Inu are setting the stage for a potential reversal of its current downtrend. If these trends continue, Shiba Inu could soon see a positive price rally.

Shiba Inu Is Preventing A Decline

The exponential moving averages (EMAs) for Shiba Inu are showing resilience, with no signs of a bearish crossover despite the recent price decline. This is a key indicator that the broader market’s bullish sentiment is lending support to SHIB. Traders are closely watching this as a potential signal for a market reversal, indicating that the altcoin may be poised for a shift.

The lack of a bearish crossover between the EMAs suggests that momentum is not as weak as it may appear. With support from the broader market’s bullish cues, Shiba Inu could avoid further downside and instead trigger a reversal. This scenario would help change the trend, offering a window for potential gains in the near future.

Shiba Inu’s macro momentum is showing signs of recovery, driven by a significant increase in capital inflows. The Chaikin Money Flow (CMF) indicator has been rising steadily over the past week, signaling that investor optimism is returning. This trend reflects a growing belief in Shiba Inu’s potential for recovery as more funds flow into the asset.

These increased inflows suggest that Shiba Inu is gaining traction among investors. As the altcoin attracts more buyers, it could find the necessary momentum to reverse its downtrend and regain lost ground. Such positive market behavior is crucial in establishing a solid foundation for the upcoming price movement.

SHIB Price Breakout Likely

Shiba Inu’s price is currently at $0.00001559, on the verge of breaking out of the downtrend that has persisted since December 2024. This potential breakout hinges on holding the current price levels and breaking key resistance zones. Successfully breaking above $0.00001676 would trigger a price rally toward $0.00001961.

If Shiba Inu is able to maintain this upward momentum, it could flip $0.00001676 into support and continue to move toward $0.00002093. This would mark a successful breakout, giving SHIB investors hope for a more significant price recovery as it challenges new price levels.

However, failure to break above $0.00001676 could result in a pullback, bringing Shiba Inu down to its support at $0.00001462. Losing this support level would open the door to further declines, potentially driving the price to $0.00001271 and invalidating the current bullish outlook.