ADX Indicator Reveals the Full Picture of Shiba Inu: Selling Pressure Has Not Yet Dissipated

As of now, Shiba Inu (SHIB) is facing a major challenge as net capital flows continue to exit the market. Notably, the ADX indicator, a tool measuring trend strength, still clearly signals that the current downtrend remains very strong. In the past 24 hours, SHIB has seen a +3.48% change, but this recovery remains weak compared to other negative technical indicators.

ADX Indicator: The Key Factor in Determining SHIB’s Trend

Looking at the hourly chart of Shiba Inu, we see that the price remains below the 7-period Smoothed Moving Average (SMMA) at around $0.00000784. More importantly, the ADX (14) is at 38, indicating a very strong trend. Unlike other indicators, ADX not only shows the direction but also measures the strength of the current trend — when ADX exceeds 25, it often signals a trend that shouldn’t be ignored.

Using the ADX for analysis, we realize that although SHIB has moments of pause, the overall trend still carries significant downward pressure. Coupled with the fact that the SMMA is continuously sloping downward, this high ADX level suggests that those expecting a quick rebound will have to wait longer. A real upward move only becomes possible if the price closes and holds above $0.00000784.

The Chande momentum indicator is currently at -34, clearly reflecting that sellers still hold the advantage, although the pressure seems to have eased compared to before. A positive signal will appear when this indicator rises above zero, indicating selling pressure is waning and buyers are regaining control.

Net Capital Flows: The Story of Traders Turning Away

On the futures side, the picture remains bleak. In the past 12 hours, inflows into SHIB totaled $4.86 million, but outflows reached $5.10 million, resulting in a net outflow of approximately $235,800. While this number is small, it reflects a general trend: traders remain cautious.

Extending the timeframe to 24 hours, the situation is no better: inflows are $12.97 million, outflows are $14.67 million, with a net outflow of about $1.7 million. The net change rate is -37.27%, indicating a clear imbalance. Even over 3 days, the pattern persists: total inflows of $22.57 million, total outflows of $25.87 million, with a net outflow of roughly $3.3 million.

This shows that traders overall have been reducing their positions rather than increasing them. Unless these net outflows decrease significantly or turn positive, a strong recovery seems unlikely.

Key Price Levels: Where the Battle Will Take Place

Regarding price levels, SHIB’s potential bottom lies around $0.00000775 to $0.00000780. If this support level is broken, sellers may attempt to push the price down to $0.00000770. On the upside, resistance begins at $0.00000784 (SMMA), then extends to recent correction zones, approximately $0.00000790 to $0.00000793.

In summary, combining the strong trend indicated by ADX, the persistent negative net capital flows, and clear resistance levels, SHIB’s current story is one of sellers’ resilience. Only when the ADX indicator weakens and net flows turn positive will the outlook have a chance to change.