🚨 Shiba Inu Price Rally: A Fleeting Pump or the Calm Before the Storm?

Memecoins are pumping again—but don’t pop the champagne just yet.

Shiba Inu’s latest surge has traders buzzing, but seasoned crypto vets know the drill. When the dog wags the market, volatility bites back.

Here’s why this rally might be built on quicksand.

The Pump Before the Dump?

Every memecoin cycle follows the same script: hype inflates the bubble, then reality punctures it. Shiba Inu’s parabolic moves look eerily familiar—just like the last time retail FOMO crashed into a sell-off.

Liquidity Mirage

Low-cap alts like SHIB thrive on thin order books. A few whale buys can rocket the price… until those same whales cash out. Spoiler: they always cash out.

The Cynic’s Take

Wall Street gets ETFs. Crypto gets dog tokens. Maybe the real ‘financial revolution’ was the gambling addiction we made along the way.

Stay nimble, folks. This dog might not hunt for long.

Second, Shiba Inu’s open interest in the futures market has been weak in the past few months. Open interest stood at just $179 million on Thursday, July 10, much lower than that of other smaller meme coins like Pepe and Bonk.

The same is true for Shiba Inu’s volume in the spot market. The $270 million volume on Thursday was lower than Dogecoin’s $2.4 billion, while Pepe, Bonk, and Pudgy Penguins each had over $1 billion.

Shiba Inu’s ecosystem is also struggling, with Shibarium holding a total value locked of just $2.3 million and its transaction growth declining. Its other tokens, such as BONE, TREAT, and LEASH, have also not gained traction.

Shiba Inu technical analysis points to a dive

Meanwhile, technical analysis signals that shiba inu price may be on the verge of a bearish breakout. The Average Directional Index has tumbled to 18, a sign that the rally has no momentum. An ADX figure of 20 and below, especially when pointing downward, is usually a bearish sign.

Further, shiba inu remains below the Supertrend indicator, indicating that this recovery is still weak. The coin also remains below the 50-day and 100-day moving averages.

The biggest risk, however, is that the ongoing rally is part of the handle section of the inverse cup-and-handle pattern. This pattern often leads to a strong bearish breakdown.

Therefore, the coin will likely have a bearish breakout in the NEAR term. This view will be confirmed if it drops below the lower side of the inverse cup-and-handle. Such a move will likely push it below $0.000001.