Shiba Inu (SHIB) price prediction: Two key on-chain indicators show bullish divergence, could SHIB be about to hit a rebound?

Despite the fact that the price of Shiba Inu (SHIB) has fallen by 11% in the past week due to the overall slowdown of the memecoin market, currently trading at $0.00001234, two key on-chain indicators — weighted sentiment and Chaikin Money Flow (CMF) — are both signaling a bullish divergence. This article provides an in-depth analysis of the market psychology and capital flow behind these on-chain data, offering SHIB investors short-term price movement predictions and key crypto assets investment strategy references.

[Market sentiment turns warm against the trend: Weighted sentiment reaches a seven-day high revealing traders' confidence]

(Source: Santiment) Despite the recent lackluster performance, the weighted sentiment indicator for SHIB has turned bullish, indicating that traders' confidence in this memecoin is becoming increasingly optimistic. According to Santiment data, this indicator reached a seven-day high of 1.153 at the time of publication. The weighted sentiment of an asset measures its overall positive or negative bias by combining social media mention volume and the tone of discussions. When the weighted sentiment of an asset is positive, it indicates rising confidence and renewed market interest in the asset, even if its price is under pressure. On the other hand, negative weighted sentiment reflects a bearish market condition. This means that investors have become skeptical about the short-term outlook for the token, which may lead to a decrease in trading activity. The continuously falling price of SHIB alongside the rising weighted sentiment creates a bullish divergence, suggesting that despite the price decline, market confidence is rising. This divergence is often interpreted as a potential precursor to a trend reversal, indicating that traders may be quietly positioning themselves in preparation for a rebound.

【Capital flow hints at mystery: The CMF indicator steadily rises pointing to a potential bottom formation】

(Source: TradingView) In addition, the Chaikin Money Flow (CMF) trend of this altcoin also supports this bullish view. The daily chart readings of this memecoin indicate that even though the SHIB price is falling, its CMF continues to rise steadily, forming another bullish divergence. At the time of publication, the CMF reading was 0.04, indicating that funds are starting to flow back into this asset. CMF measures buying and selling pressure based on price and volume. A positive CMF reading, like the one currently held by SHIB, indicates that more funds are entering the market than are leaving. When this occurs simultaneously with a price drop, it suggests that traders are quietly accumulating the token at lower price levels, which is a sign of potential strength.

【SHIB Price Prediction: Can the Bullish Divergence Turn into a Trend Reversal and Breakout?】 When such bullish divergences form, they often indicate a potential trend reversal. For SHIB, this means its buyers are accumulating enough momentum to challenge the selling pressure and may trigger a rebound towards $0.00001295. On the other hand, if the sell-off continues, SHIB may face the risk of falling to $0.00001167. For investors making SHIB price predictions and seeking buying opportunities, these on-chain indicators provide important insights beyond mere price action.

Conclusion: Overall, the current price drop of SHIB, combined with the strengthening of internal on-chain indicators, constitutes a typical divergence between technical and emotional aspects, which is often an important signal that a short-term bottom is forming in the market. The significant improvement in weighted sentiment indicates that the confidence of the community and traders has not collapsed due to the price decline; instead, they are looking positively at the future market. Meanwhile, the positive value and upward trend of the CMF reveal that smart money may be quietly accumulating at the current price level. For cryptocurrency investors, this divergence phenomenon deserves high attention, as it may indicate that SHIB is likely to initiate a rebound after testing and holding key support. However, traders should still be wary of the overall sentiment in the memecoin market and the impact of Bitcoin's market trends; if selling pressure continues, there is still a risk of SHIB further testing lower levels. Setting 0.00001167 dollars as a key support level and 0.00001295 dollars as an initial rebound target is a relatively reasonable short-term trading strategy.