What does the ADX indicator reveal about the Shiba Inu trend in recent days?

Market Psychology for Shiba Inu has just undergone a significant transition. With the ADX indicator signaling the strength of a downtrend, questions about SHIB’s next move are becoming clearer. Recent data shows that SHIB’s price has corrected over the past few weeks, but is this just a temporary pause or the start of a major sell-off?

ADX Indicator and Shiba Inu Technical Outlook

Looking at the hourly chart, Shiba Inu is currently trading below the 7-period Smoothed Moving Average (SMMA), around $0.00000784. Notably, the ADX (14) is at 38, a relatively high number. When the ADX exceeds 25, it indicates a strong trend is forming—regardless of whether it’s upward or downward.

In SHIB’s case, with the ADX at 38 and the price below the declining SMMA, the message is clear: selling pressure remains dominant. Although the Chande Momentum Oscillator has recently stabilized (at -34), it’s still in negative territory, confirming that sellers hold the control. A positive signal would appear if this oscillator crosses above zero, at which point selling pressure would truly ease.

The key technical resistance for SHIB begins at $0.00000784 (the SMMA line), then extends to the recent correction zone around $0.00000790 to $0.00000793. On the downside, potential support levels are at $0.00000775 to $0.00000780.

Capital Flows Continue to Exit, Especially in Futures

SHIB futures data shows traders are still trading cautiously. In the past 12 hours, inflows reached $4.86 million, but outflows hit $5.10 million, resulting in a net outflow of $235,800. Looking over a broader 24-hour period, the picture becomes even clearer: inflows totaled $12.97 million, outflows $14.67 million, with a net outflow of $1.7 million—a net change rate of -37.27%.

Extending the timeframe to 3 days, this pattern remains consistent. Total inflows are $22.57 million, total outflows $25.87 million, with a net outflow of $3.3 million. Although the 3-day net change indicator is nearly balanced at 0.61%, the reality is that net capital has been continuously flowing out over 12 hours, 24 hours, and 3 days. This suggests traders are generally reducing their positions rather than increasing them, a negative sign for those hoping for a recovery.

What’s the Next Scenario?

With a combination of a strong ADX (38), negative momentum, net capital outflows, and the price below the SMMA, a clear technical warning is issued. If SHIB breaks below the support zone of $0.00000775 to $0.00000780, the next move could be testing the $0.00000770 level.

However, the possibility of forming a bottom should not be overlooked. Although the ADX is high, it does not indicate direction—it only shows that a trend is strongly underway. If capital begins to flow back in and the Chande oscillator crosses above zero, the dominance of sellers could be challenged. At that point, the resistance at $0.00000784 (SMMA) would become a testing ground for genuine buying interest.

Shiba Inu traders should note that, regardless of how many positive signals there are, capital flow remains king in the crypto market. Until net outflows cease and turn positive, a sustainable recovery remains unlikely.