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SHIB Panic Fades as Charts Signal Stabilization After Months of Heavy Selling

SHIB Panic Fades as Charts Signal Stabilization After Months of Heavy Selling

  • SHIB selling pressure eases as volatility contracts and price finds stability
  • Market data signals seller exhaustion while buyers defend key support zones
  • Charts reflect consolidation phase following months of heavy downside pressure

Shiba Inu has remained under sustained pressure for months, but recent market behavior suggests panic-driven selling is losing momentum. Price action now reflects stabilization rather than a renewed bearish acceleration, as traders observe changes in volatility, volume, and overall structure.


For a long period, SHIB traded below key moving averages, confirming a persistent downtrend. Earlier declines were marked by sharp candles and elevated volatility, reflecting emotional exits and aggressive selling. However, that phase appears to have cooled, based on recent chart patterns and trading behavior.


Currently, price candles have become noticeably smaller, indicating weaker downside momentum. Volatility has continued to compress, while trading volume has returned to more typical levels. Besides, SHIB has held close to a local support range instead of extending steep declines, suggesting selling pressure has eased.


Additionally, buyers are stepping in near current levels, absorbing available supply. This activity has prevented disorderly price drops, which often characterize panic phases. Despite broader weakness, SHIB continues to trade actively across major exchanges, with consistent daily turnover supporting liquidity.


Claims that SHIB could fall to $0 lack grounding in current market conditions. A zero valuation would require no bids, no liquidity, and no market participation. Instead, SHIB maintains steady trading activity, signaling continued engagement rather than abandonment.


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Chart Structure Reflects Cooling Sell-Off Pressure

From a technical perspective, indicators point toward seller fatigue. The Relative Strength Index has remained in neutral to oversold territory for an extended period. Historically, such positioning often aligns with consolidation rather than sharp continuation lower.


Moreover, the price has struggled to establish aggressive new lows. Each downside attempt meets resistance, making further declines more costly for sellers. Consequently, a meaningful breakdown would likely require a fresh catalyst, such as broader market stress or a spike in distribution volume.


shiba inu

Source: Tradingview

Chart compression following a liquidity flush often signals a transition phase. After panic selling exhausts weaker holders, assets frequently move sideways as participants reassess risk. Hence, the current setup aligns with stabilization rather than renewed capitulation.


Stabilization does not signal an immediate trend reversal. Markets can remain range-bound for extended periods, especially after prolonged declines. Still, the absence of strong selling waves reduces the likelihood of sudden breakdowns under current conditions.


Overall, SHIB’s recent behavior reflects exhaustion rather than panic. Selling pressure has moderated, buyers remain active, and liquidity stays intact. As trading continues, market participants will closely watch volume and volatility for clues about the next directional move.


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