Shiba Inu (SHIB) Price Analysis

Shiba Inu (SHIB) is currently facing substantial market pressure, with its price declining by 10.31% over the past 24 hours. The cryptocurrency opened at $0.00001466 and has since trended downward to $0.00001314.

The ongoing decline showcases lower highs and lower lows, indicating a definitive bearish trend. With SHIB nearing crucial support levels, its ability to maintain these levels will dictate its chances for recovery or further declines.

Key Support and Resistance Levels

SHIB is currently testing vital support zones that could significantly affect its short-term price trajectory. The immediate support stands at $0.00001300, acting as a psychological barrier; a break below this level could spark further selling pressure.

The next support level at $0.00001280 may attract potential buyers, while $0.00001250 serves as a stronger historical support, possibly preventing deeper drops. If SHIB cannot hold these levels, further declines are highly likely.

Resistance Levels and Potential Trend Reversal

For SHIB to signify a potential bounce back, reclaiming $0.00001350 is crucial. Surpassing $0.00001400 could heighten bullish momentum. Additionally, breaking past the previous high of $0.00001466 would confirm a trend reversal and trigger an upward movement. However, regaining buyer interest is essential before challenging these resistance levels.

Related: Meme Coin Meltdown? Shiba Inu Hints at Market Turnaround

Market Indicators: RSI, MACD, and Trading Volume

Trading volume has increased by 12.11%, indicating robust market activity. Despite this, bearish sentiment remains prominent. The Relative Strength Index (RSI) stands at 32.36, bordering the oversold threshold of 30, hinting at substantial selling pressure but potential recovery if buying volume rises.

The Moving Average Convergence Divergence (MACD) reveals negative momentum, with the MACD line positioned below the signal line. This suggests that unless SHIB finds support soon, further declines are probable.

Related: Shiba Inu Price Falters as Whale Transactions Plummet 79%

SEC’s Stance on Meme Coins

The U.S. Securities and Exchange Commission (SEC) recently clarified its position on meme coins, including Shiba Inu and Dogecoin, stating they are not categorized as securities under federal law.

> 🚨NEW: The @SECGov Division of Corporation Finance has provided guidance on memecoins, asserting they are NOT securities and comparable to collectibles.
>
> “It is the Division’s view that transactions in the types of meme coins described in this statement, do not involve the offer…
> — Eleanor Terrett (@EleanorTerrett) February 27, 2025

The SEC further described meme coins as collectibles due to their speculative nature, lacking inherent utility, and their value derived from social engagement and market demand rather than investment principles.

Howey Test and Meme Coin Regulation

Moreover, the SEC indicated that meme coins do not pass the Howey Test, which determines an asset’s classification as a security. This is because meme coin buyers do not expect profits from a centralized enterprise, placing these assets outside federal securities regulations.

While transactions involving meme coins don’t require registration, any fraudulent activities related to their sales are still subject to regulatory enforcement actions.

Disclaimer: The information in this article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses incurred from the utilization of content, products, or services mentioned. Readers should exercise caution before making any financial decisions.