Shiba Inu Price Drops 15% Amid Bearish Trend

The Shiba Inu (SHIB) price has been fluctuating, currently hovering around $0.00001486 after a recent decline from a high near $0.00001746. This drop represents a nearly 15% retracement over the past three sessions, pulling SHIB back into a former demand zone. While short-term indicators suggest oversold conditions, the broader price structure indicates that bulls are attempting to maintain this area as support.

Technical analysis reveals that the Parabolic SAR on the daily chart has flipped above price action, signaling a bearish trend continuation unless reversed. The Bollinger Bands on the 4-hour chart show price falling below the mid-band and approaching the lower band at $0.00001471, suggesting potential volatility expansion on the downside.

The recent decline in SHIB's price can be attributed to profit-taking following a sharp price spike earlier this month. SHIB faced heavy resistance near the $0.00001700 level, triggering a sequence of lower highs. On the 30-minute chart, the Relative Strength Index (RSI) has dipped to 26.11, deep in oversold territory, while the Moving Average Convergence Divergence (MACD) is printing widening red bars with a bearish crossover. This suggests that short-term momentum remains against the bulls, and any rebound may face resistance around $0.00001560 and $0.00001588.

Despite the weakness, there is early evidence of support forming between $0.00001430 and $0.00001450. This zone coincides with previous breakout levels and sits just above the 200 Exponential Moving Average (EMA) on the 4-hour timeframe. The 4-hour chart also shows price slipping below the 20 and 50 EMA, which now act as immediate resistance. The 100 EMA at $0.00001453 and 200 EMA at $0.00001388 are key support levels to watch. A breakdown below $0.00001430 could risk exposing $0.00001320 next.

SHIB’s short-term fate hinges on its ability to hold above the horizontal demand zone marked near $0.00001430. The ascending trendline from the May 1 breakout remains intact on the 4-hour timeframe, intersecting with this level. On the daily chart, SHIB is still trading above the major breakout region from April. However, the trend is weakening, and further downside could push price toward the 200-day Simple Moving Average (SMA) at $0.00001344.

To reclaim bullish control, bulls must first flip $0.00001560 into support and then attempt a re-test of $0.00001618, where a descending trendline currently caps the structure. The Shiba Inu price has entered a critical technical zone. If bulls can reclaim the $0.00001500 level with volume, SHIB could target a short-term rebound toward $0.00001618. But if current support breaks, the next leg down could push toward the $0.00001300s. Traders should watch RSI recovery and MACD flattening for early signs of a bounce.