Investor Consensus Drives Shiba Inu's Extended Downtrend

The cryptocurrency Shiba Inu (SHIB) appears to be under renewed downward pressure following a failed breakout attempt and a rejection of the 200-day exponential moving average (EMA), key technical indicators that many traders and analysts closely monitor. After a brief rally in early September 2025, SHIB encountered resistance near the 200-day EMA—a widely used metric for identifying long-term trends—and failed to sustain momentum above this level, signaling potential bearish sentiment in the market.

Technical analysis suggests that the inability to breach and hold above the 200-day EMA could lead to further declines, as it represents a critical psychological and strategic threshold for investors and automated trading algorithms. The rejection of this level has historically been associated with increased selling pressure, particularly in assets with high volatility and speculative trading dynamics such as SHIB. Additionally, the recent failure to break out of a consolidation pattern has raised concerns among traders who had anticipated a reversal in the coin's trajectory.

Market sentiment appears to be shifting, with on-chain data reflecting a net outflow of SHIB from exchanges—a sign typically associated with reduced short-term trading activity and a possible accumulation phase. While this could eventually support a future rebound, it currently lacks immediate bullish implications, especially with the broader crypto market remaining in a cautious mode amid macroeconomic uncertainties. SHIB’s price has continued to trade below key moving averages, further supporting the view that the asset is in a technical downtrend.

Analysts have noted that the next crucial support level for SHIB lies just below the $0.0000085 mark, and a break below this level could trigger additional selling pressure, potentially extending the downward trajectory. The volume of trades during the recent rejection of the 200-day EMA also indicated that the bearish momentum was not driven by a single large sell-off, but rather a broader consensus among traders to take profits or hedge positions. This distributed selling pattern reinforces the likelihood of a prolonged bearish phase.

Despite the current bearish scenario, SHIB remains one of the most actively traded altcoins, with a relatively large and vocal community of supporters who continue to express long-term optimism about the token’s utility and governance structure. However, such bullish sentiment has yet to translate into a sustained price increase, and the market appears to be discounting immediate upside potential while focusing on downside risks.