An analysis says Shiba Inu has, after a long decline, moved closer to a zone where room for further losses is limited.

U.Today, a blockchain outlet, reported on June 28 that Shiba Inu is in one of its weakest technical stretches this year, but recent price action and on-chain indicators show selling pressure is gradually weakening.

Shiba Inu is currently below its 50-day, 100-day and 200-day exponential moving averages. All three remain sloping downward, so the trend itself is still bearish. A recent rebound attempt that appeared to be breaking out of a short upward pattern quickly faded. The price is hovering near a local low around $0.0000042.

What drew market attention was not the size of the decline but the weakening force behind it. Trading volume has gradually fallen across the latest downtrend. Volume typically surges during late-stage capitulation in a bear market, but that kind of strong selling pressure was not seen in this move. The market assessment is that the current picture is closer to “slowing activity” than “strong capitulation.”

On-chain indicators pointed to a similar pattern. Net inflows remained negative, meaning more tokens were leaving exchanges than entering them. At the same time, exchange reserves held relatively steady at around 80 trillion SHIB. That suggests holders are not rushing to send tokens to exchanges for short-term cash-outs. The outlet said exchange outflows far exceeded inflows and that holders were not in a situation of rushing to liquidate.

Network activity did not fall sharply either. The number of active addresses and the transaction count stayed broadly stable. Even as the price slid into a low zone, there was no sign of fear-driven distribution selling. That allows an interpretation that even if weakness persists, fresh selling power to sharply deepen further declines is limited.

Technical indicators have also raised the possibility of a bottoming signal. The relative strength index, or RSI, fell into heavily depressed territory and is now moving near levels previously linked to local bottoms. An oversold RSI signal alone cannot confirm a rebound, but the outlet said such zones often mean downside potential becomes more limited until a new catalyst emerges.

The key question is not whether the downtrend has ended, but how many sellers remain to push prices lower. The outlet pointed out that after months of declines, there may not be many sellers left. Falling volume, weak momentum and the absence of panic-driven distribution selling together suggest the risk-reward setup is gradually shifting.

That does not mean a rebound is starting immediately. Shiba Inu is still below its key moving averages, and no trend-reversal signal has been confirmed. In this situation, the outlet said the market’s next focus will be whether catalysts such as fresh inflows of funds or a pickup in trading activity actually appear.