Shiba Inu Faces Bearish Momentum

Recent price action indicates that bearish momentum for Shiba Inu (SHIB) may intensify, as the token is unable to break through critical resistance levels.

Current Resistance Levels

Concerns about SHIB entering another decline have been confirmed by its failure to rise above the 26-day Exponential Moving Average (EMA). This stagnation poses a significant setback for bullish traders, as overcoming this resistance is crucial to avoid a drastic decline.

SHIB has struggled to gain traction for weeks, with the 26 EMA acting as an insurmountable barrier. This has prevented the asset from achieving a higher low, necessary for any trend reversal.

Support Levels at Risk

Without a notable shift in momentum, a potential breakdown below the critical support level of $0.00001230 seems imminent. Last tested during previous market corrections, the next important support level stands at $0.00001180. Failure to hold above this price range could exacerbate selling pressure and confirm bearish sentiment.

Market Trends

The broader cryptocurrency market has also faced challenges in achieving steady growth, with SHIB reflecting similar trends. Weak buyer interest is evident in SHIB’s struggle to break resistance and declining trading volume. Furthermore, market indicators suggest a persistently negative outlook, as the Relative Strength Index (RSI) approaches oversold territory. This scenario raises the risk of SHIB dropping below the $0.00001230 mark, potentially triggering liquidations that complicate recovery.

Outlook

For SHIB to escape its current downward trajectory, a distinct higher low formation is essential. The first sign of bullish strength would occur upon a successful surge above the 26 EMA, opening up opportunities for a rally towards $0.00001450. Until then, the downward trend remains in play, and any further collapse could lead to prolonged declines. Given the shaky market sentiment, SHIB holders should remain cautious, as further losses are expected if key resistance levels are not reclaimed.