ADX Indicator Analysis for Shiba Inu: Will the Downtrend Continue?

The Shiba Inu market recently showed signals that traders should pay attention to. Not only is the price trending downward, but the ADX indicator also reveals that selling pressure still dominates clearly. Is this the start of a new sell-off or just a pause before a recovery?

Futures Contract Flow Confirms Selling Pressure

Recently, the flow of funds from the SHIB futures market has not been positive. In the past 12 hours, capital inflow was $4.86 million, but outflows exceeded that with $5.10 million. As a result, the net cash flow is approximately -$235,800, indicating cautiousness among traders.

Although the net change indicator shows a positive 83.95%, the net value remains negative, suggesting that trader confidence has not fully recovered. Extending the timeframe to 24 hours, this phenomenon becomes even more apparent. Inflows reached $12.97 million, while outflows were $14.67 million, leaving a net outflow of about $1.7 million. Compared to market capitalization, this ratio is only 0.037%, but it is enough to show that traders are reducing their positions rather than increasing them.

When expanding the timeframe to 3 days, the pattern remains consistent. Total inflows were $22.57 million, outflows $25.87 million, with a net outflow of $3.3 million. Although the net change indicator is nearly balanced at 0.61%, this is just a smokescreen. In reality, across all timeframes, net cash flow is negative—this is not coincidental but a consistent signal that traders are abandoning their positions.

ADX Indicator Reveals a Strong Downtrend

Turning to technical analysis, the ADX (14) is at 38, a significant number. To understand better, note that ADX measures trend strength, not direction. Values above 25 typically indicate a strong trend. The 38 reading for SHIB suggests that regardless of whether the price is rising or falling, the trend is very robust.

With SHIB still below the 7-period Smoothed Moving Average (SMMA) at around $0.00000784, selling pressure is reinforced by this high ADX. In other words, this is not just a typical downtrend but a strong downward momentum with significant force. Momentum, measured by the Chande Momentum Oscillator, is also at -34, indicating the sellers still hold the advantage.

For a market reversal, the price must break above the SMMA, and the Chande indicator must cross above zero to confirm buyers are regaining control. Particularly, the combination of a high ADX (indicating strong momentum) and negative momentum (indicating downward direction) paints a bleak picture for SHIB holders.

Key Price Levels to Watch for SHIB

Based on the short-term chart, market analysts identify critical price zones. First, the potential bottom for SHIB is around $0.00000775 to $0.00000780. If selling pressure continues, this level will be the support before possibly breaking down to $0.00000770.

On the resistance side, the first barrier is at the current SMMA of $0.00000784. Additionally, the recent correction zone from $0.00000790 to $0.00000793 will also serve as a strong resistance if the price attempts to recover. Yesterday’s trading range from $0.000007754 to $0.000008215 indicates ongoing indecision, with sellers trying to push lower while buyers defend key levels.

What Scenario Will Shiba Inu Follow?

Overall, the data points in the same direction. The high ADX indicates a strong trend, negative net cash flow shows bearish sentiment, and negative momentum suggests downward pressure remains dominant. Although the market may experience minor recoveries, unless there is a fundamental change in the flow of funds or the ADX begins to weaken, the downward trend will likely persist.

With Shiba Inu trading at a lower price than last week, the question remains whether this is a bargain or a trap, which must be answered with numbers rather than hopes. Currently, the figures are not yet optimistic enough to recommend a positive turnaround.