- The memecoin was unable to match Bitcoin’s gains over the past two weeks.
- Low demand and on-chain distribution conditions meant a SHIB recovery would be difficult.
The memecoin market has not made much bullish headway over the past three weeks.
A month ago, the meme market cap stood at $59.6 billion. At the time of writing, the figure stood at $54.72 billion, indicating a sideways movement across the sector.
Shiba Inu [SHIB] has also been trading within a range since March.
Its attempted breakout in May failed, and the token was back at the range lows at $0.0000111. SHIB was not the only crypto-token exhibiting range-bound price action.
Even Bitcoin [BTC] remained range-bound between $101.5K and $109.5K.
However, Shiba Inu has underperformed Bitcoin over the past two weeks, signaling weaker demand. As a result, the outlook for Shiba Inu remains bearish.
Multiple challenges to overcome for SHIB bulls
Source: SHIB/USDT on TradingView
The range (white) extended from $0.0000111 to $0.0000142, with the mid-range resistance at $0.0000126.
At the time of writing, the market structure was firmly bearish. The lower high at $0.0000136 (cyan) would need to be breached to shift the structure bullishly.
The indicators were not on board with such a bullish move. The trading volume has been low throughout 2025, compared to the November-December 2024 volumes.
Moreover, the sellers have been dominant in 2025. This was evident as the OBV made a series of lower highs this year.
Without sustained demand, Shiba Inu will struggle to break out of the range.
Investors can wait for a swift Bitcoin rally and subsequent consolidation, which could set up the conditions for capital to flow into the memecoin sector.
Source: Santiment
Shiba Inu’s Mean Coin Age has been declining since May, following three months of accumulation.
This downtrend suggests increased token movement from long-term holders, a sign of distribution.
Meanwhile, the MVRV ratio shows that many holders are still deep in losses, and Age Consumed data revealed a spike in selling pressure during early June, which has since eased.
Taken together, these metrics point to a bearish outlook for SHIB. However, at press time, the price was sitting at a key demand zone near the range low. This opens the door for a potential short-term rally.
A breakout above $0.0000136 would be the first signal of a recovery.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
