- Shiba Inu struggles to hold gains after recent bullish breakout.
- Key support levels tested as bearish pressure builds on SHIB.
- Declining volume and resistance threaten SHIB’s short-term price momentum.
Shiba Inu is showing signs of weakness as its recent upward momentum begins to fade. The token dropped nearly 3 percent today, raising concerns about the sustainability of its latest breakout attempt.
Following a push above the $0.000015 mark, the rally has now stalled at a critical barrier. The price action shows that the price is being rejected at the 200-day Exponential Moving Average, which is a fundamental technical level that is now showing resistance, as it used to be support.
The 200 EMA, now serving as the first line of support, is under close watch amid rising selling pressure. There are speculations that Shiba Inu has not been able to support this level and might go even lower, according to chart analysis by TradingView.
In case the 200 EMA breaks, the most critical support will be at $0.0000136, a region that coincides with the 26 EMA level and a current consolidation pattern. This area has earlier offered support and is considered crucial in providing the short-term bull outlook.
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SHIB’s Price Under Pressure as Key Support Levels Come into Focus
Below that, the $0.0000125 level stands as the final structural support before a full retracement into SHIB’s pre-rally range. Analysts note that this zone could become the last defensive line if bearish momentum continues.
Trading volume has started to taper off, signaling a lack of new buying interest. Apart from that, the Relative Strength Index is at the verge of reaching 70, which is an indication that SHIB has reached the overbought zone and there is insufficient volume to accommodate additional growth.
As the bullish trend replenishes, SHIB is finding it hard to sustain the breakout. Market players are also monitoring keenly whether the token will recover some territory above the 200 EMA or plummet toward new corrections.
Further declines below the said support levels may lead to a complete collapse of the new rally. SHIB might revert to the mature price range sooner than later unless the bulls come in rapidly to undo much of the latest gains.
Shiba Inu’s rally appears to be running out of steam as it faces stiff resistance and declining volume. The current struggle below the 200 EMA could mark the start of a larger breakdown if critical support levels fail to hold.
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