Shiba Inu Drops 4% Breaking Key Support Levels

Coin WorldFriday, May 30, 2025 8:12 pm ET
3min read

Shiba Inu (SHIB) is currently facing significant challenges as it trades at $0.0000133, down about 4% for the day. The meme coin has broken below important support levels, including the 50 Exponential Moving Average (EMA), which has been a crucial support line in recent months. This breach indicates a bearish trend, with the potential for SHIB to test the early 2025 lows in the $0.0000120-$0.000009 range. The increasing selling volume and the Relative Strength Index (RSI) drifting lower further support the bearish momentum. If SHIB does not quickly recover the 50 EMA and push back above $0.0000145-$0.0000150, the likelihood of seeing $0.000009 increases daily. This would not only be a technical failure but also have a significant negative impact on investor sentiment, potentially leading to a loss of liquidity and causing even loyal retail investors to reconsider their positions.

Currently, SHIB is trapped in a range of waning optimism. Any brief recovery should be viewed as a temporary reprieve, and vigilance is necessary until SHIB can regain lost ground and close above the 50 EMA. The failure of $0.0000120 could result in a severe decline to $0.000009, transforming the present bearish mood into complete hopelessness.

Bitcoin (BTC) is currently testing the 26 EMA as a possible support level after rising to new local highs around the $110,000 mark. The recent price movement of Bitcoin is offering a traditional setup that traders ought to be closely monitoring. Bitcoin dropped from its most recent peak and formed a string of red candles, indicating a significant loss of momentum from the highs in the price performance over the last few days. This is normal behavior when the market needs to calm down following a strong rally, but the emerging candlestick pattern tells the true story. Here, we are witnessing a possible candlestick reversal. A notable lower wick on the most recent daily candle indicates that buying pressure is returning as Bitcoin tests the 26 EMA support zone. Usually this long-tailed doji-like pattern indicates that buyers are prepared to defend these levels as sellers are losing control. Put differently, this might mark the beginning of a brief reversal from the current decline. With the 26th EMA at $104,000 and additional important support at $99,800-$100,000, Bitcoin is currently trading at about $106,000. Bitcoin might swiftly rebound to retest the $110,000 range in the upcoming sessions, if not surpass it, if this reversal pattern holds. There is a genuine chance of a deeper retracement toward the 50 EMA, which is around $95,000, if support at the 26 EMA fails. As a result, the market would probably be able to shake out weaker players and reestablish a stronger foundation for future attempts to reach new highs. As of right now, the reversal candlestick offers hope that Bitcoin's bullish trend is still going strong, but the coming days will be crucial. For confirmation, traders should keep an eye on the price movement and volume levels surrounding the 26 EMA. With this technical pattern supporting it, Bitcoin might be poised for another leg higher if buying pressure increases.

Ethereum (ETH) is displaying a narrow ascending channel that has been gradually pushing prices higher. Despite its initial bullish appearance, this is beginning to feel like a trap. ETH is currently trading at about $2,690 with resistance close to $2,850 and support at the $2,500 mark. ETH has been steadily rising as the channel itself has been developing for a few weeks. A breakout is not exactly supported by the volume profile. Actually, over the past week volume has been gradually dropping, which suggests that traders are not very confident. Because it raises the possibility that the current channel is running out of steam, this decreasing volume is concerning. We may witness a brief decline to the $2,400 region if ETH breaks below this channel's lower trendline; if that does not happen, $2,100 is the next reasonable target. However, it might also mean that the market is finally waking up and getting ready for another leg higher if ETH is able to break through the $2,850 barrier. Not to be overlooked is the larger context. Although the 50 and 100 EMAs are displaying some compression around the current price levels, ETH is still recovering from a protracted and agonizing downtrend. The market is waiting for a significant event to occur, which is a classic indication of indecision. ETH is currently trapped in this channel, but it will eventually break free. Pay attention to those critical resistance and support levels. ETH will probably set the tone for the next significant move once it exits this channel either upward or downward.