SHIB big dump 10% but releases rebound signals? Two major on-chain indicators suggest bullish breakout is imminent.

Shiba Inu (SHIB) has fallen 10% over the past week, trading at $0.0000126 on August 21, reflecting the cooling of the overall memecoin market. However, on-chain data shows that two key technical indicators—Weighted Sentiment Index and Chaikin Money Flow (CMF)—are simultaneously exhibiting bullish divergence, suggesting a potential trend reversal and rebound in the short term.

Price falls but market sentiment warms up

(Source: Santiment)

According to Santiment data, the weighted sentiment index of SHIB has risen to 1,153 points, setting a new seven-day high.

The index combines the frequency of mentions on social media with positive and negative sentiment. When the value is positive, it means that even under price pressure, investor confidence remains high.

The contrast between the current fall in SHIB prices and the rise in the sentiment index constitutes a typical bullish divergence, which is often seen as an early signal of a potential reversal.

The inflow signal enhances rebound expectations

(Source: Trading View)

In addition to the emotional recovery, the Chaikin Money Flow (CMF) indicator has also shown a bullish divergence. As of the time of writing, the CMF is 0.04 and maintains an upward trend, indicating that even as the price falls, funds continue to flow into SHIB.

CMF being in the positive zone indicates that the buying pressure in the market is greater than the selling pressure, suggesting that traders may be quietly accumulating positions in the low price range, laying the groundwork for a subsequent Rebound.

key technical levels

(Source: Trading View)

Short-term resistance level: $0.00001295 (if broken, may trigger an accelerated Rebound)

Key support level: $0.00001167 (if it falls below, it may trigger a deeper pullback)

From a technical chart perspective, if buying pressure continues to strengthen, SHIB is expected to challenge the resistance range of 0.00001295 USD; conversely, if selling pressure rises, the price may test the support level of 0.00001167 USD.

Short-term Outlook

The synchronous bullish divergence of the two major on-chain indicators brings potential momentum for a rebound in SHIB.

Although the memecoin market has generally cooled down, the warming of sentiment and capital inflows may become an important catalyst for driving SHIB to break through in the short term.

Conclusion

SHIB is currently in a price correction phase, but the bullish signals released by on-chain data cannot be ignored. Investors should closely monitor the defense situation at the resistance level of $0.00001295 and the support level of $0.00001167, as this will determine whether SHIB can achieve a rebound from this round of correction. For more real-time market updates and on-chain analysis, please follow the official Gate platform.