The Chaikin Money Flow Indicator Reveals Shiba Inu Has Low Accumulation
Shiba Inu's (SHIB) price bounced off the $0.0000085 key support level, but the rally is now quickly fading away, lacking strong bullish momentum and follow through. Furthermore, based on the Chaikin Money Flow (CMF) indicator, there are no signs of big institutions and whales accumulating the cryptocurrency.
Chaikin Money Flow
After a brief break above the 0 center-line, the CMF oscillator has returned below zero, signaling weakness. The last two times the CMF oscillator exhibited the same pattern, SHIB's price actually made a new low.
Most of the CMF readings since the start of the year were below the zero line, confirming that the whales haven't been accumulating through this bearish market. This shows that institutions have leaned towards distribution.
How does the Chaikin Money Flow indicator work?
The Chaikin Money Flow indicator uses the Accumulation/Distribution Line to measure the movement of money into and out of a security.
The Accumulation/Distribution Line is a volume-based indicator, using a security's close price and volume.
The Chaikin Money Flow (CMF) indicator is a momentum indicator that tracks the amount or flow of money into and out of a security.
RSI Momentum
The Relative Strength Index (RSI) oscillator also confirms the recent price action as it shows more bearish momentum pressure.
The oscillator briefly broke above the 50 mid-level, but the move couldn't be sustained, revealing weakness in the current rally.
On the technical side, the bulls cannot hold above the $0.00001 big round number, again revealing that this market is still very weak.
Looking forward
SHIB's price can stabilize around the current price levels and see more consolidation, a common price behavior in a bear market. However, if SHIB's price moves above the $0.00001 big round number, it will signal that the bulls are back in control and that a new bullish move is unfolding.
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