Shiba Inu Drops 26.33% Amid Bearish Momentum Concerns

Shiba Inu's price has recently experienced a sharp decline, drawing significant attention from the analyst community. The cryptocurrency's value has dropped by 26.33%, hovering near key support levels. This downward trend has sparked concerns among traders about the potential for further declines or a possible rebound. The daily chart indicates oversold signals and fading momentum, with Heikin Ashi candles predominantly red, suggesting persistent bearish pressure. The Relative Strength Index (RSI) is at 24.71, well below the 30 threshold, indicating that SHIB is in oversold territory. Historically, SHIB has seen short-term rebounds when the RSI falls under 30, although the strength of these rebounds depends on broader market sentiment.

Immediate support for SHIB is at $0.00001079, with major support at $0.00000800. The resistance zone is between $0.00001250 and $0.00001400. SHIB has previously bounced from the $0.00001070–$0.00001080 range, and the current RSI suggests another short-term bounce is possible. However, if this support breaks, a retest of $0.00000800 could occur, representing a 26.33% drop from the current price. For bulls to regain control, SHIB needs a strong daily close above $0.00001250, which would break the recent lower high pattern and open the door to retest the $0.00001400 range, roughly a 29% upside from current levels. Without strong volume or a catalyst, any bounce from the oversold RSI might just be a “dead cat bounce.”

Momentum remains strongly bearish, with Heikin Ashi candles showing no upper wicks, indicating one-sided bearish momentum. The RSI’s 14-period moving average is trending down, meaning bulls have not shown any sustained buying interest. Until the RSI crosses above 30 and breaks the moving average, buyers will likely remain cautious. There are two key scenarios for the next 7–10 days. In the bearish scenario, SHIB price breaks below $0.00001079 support, falls to test $0.00000800, and the RSI remains below 30, indicating a bearish continuation. In the bullish scenario, the RSI bounces from 24.71 and crosses above 30, SHIB price breaks $0.00001250 resistance, and heads toward $0.00001400 in a recovery move.

The SHIB price dipped to $0.00001135, experiencing a 24-hour loss of over 3.90%, with its market capitalization also dropping by a similar percentage. Despite a 1900% surge in the burn rate, the price of SHIB has continued to decline, raising concerns about the effectiveness of the burn mechanism in boosting the price. Analysts have warned of a potential 50% drop if the price breaks below the key support zone, with the next major support target near $0.0000054. The bearish sentiment and low Total Value Locked (TVL) are weighing on the recovery of SHIB, despite the increased burn rate.

Shiba Inu is currently forming a bullish pattern, with a double-bottom pattern emerging near key support levels. The price has recently fallen to a weekly low of $0.00001138, but the formation of this pattern suggests a potential reversal. However, the overall trend remains downward, and a turning point in SHIB's price trajectory is quickly approaching. The price of SHIB has plunged from $0.00001765 in May to $0.000011 today, indicating a significant decline in value. Despite the bearish sentiment, the emergence of a bullish pattern offers a glimmer of hope for a potential recovery in the near future.

Market observers are speculating on a possible reversal in Shiba Inu's price after noticing a double-bottom pattern. The recent price crash has drawn attention amid no direct comments from its leadership. Analysts note Shiba Inu's price plunged sharply recently, although it shows signs of recovery. A double-bottom pattern is taking shape, indicating a potential bounce. Despite this, Shiba Inu's leadership has remained silent on the price issues, focusing instead on ecosystem advancements. Shiba Inu's lead developer Shytoshi Kusama continues directing ecosystem developments, maintaining a strategic focus on technology rather than price.

The price drop of Shiba Inu, alongside this newfound pattern, raises concerns among community members. It highlights potential resale points for investors if confirmed. Investors, traders, and enthusiasts are keenly observing with hope for a favorable market turn. Potential outcomes could involve a rebound due to technical market corrections. Despite near-term price drops, experts suggest historical precedents indicate potential recovery. These events show how market attention and community engagement might influence cryptocurrency trends.