Shiba Inu Price Drops 22.4% Amid Bearish Momentum

Shiba Inu (SHIB) price has been in the spotlight due to a consistent decline, hovering near key support levels. The memecoin's recent performance has left traders uncertain about its future direction, with volatility increasing and all eyes on whether SHIB will rebound or continue to fall. A detailed analysis of the daily chart reveals oversold signals, fading momentum, and crucial zones that could determine the next significant move. The question remains: is this the calm before a bullish comeback or the start of a steeper crash?

Currently, SHIB is trading around $0.00001086, following a downtrend from its recent high near $0.00001400. The chart, using Heikin Ashi candles, shows almost entirely red candles, indicating persistent bearish pressure. However, the Relative Strength Index (RSI) is flashing a major signal. With the 14-day RSI at 24.71, SHIB is in oversold territory (below 30), suggesting a potential reversal. Historically, SHIB has seen short-term rebounds when the RSI falls under 30, although the strength of these rebounds depends on broader market sentiment.

Examining the nearest support and resistance levels, the immediate support is at $0.00001079, with major support at $0.00000800. The resistance zone is between $0.00001250 and $0.00001400. SHIB has bounced from the $0.00001070–$0.00001080 range before, and the current RSI suggests another short-term bounce. If this support breaks, a retest of $0.00000800 is likely, representing a 26.33% drop from the current price.

For bulls to regain control, SHIB needs a strong daily close above $0.00001250, breaking the recent lower high pattern. This would open the door to retest the $0.00001400 range, roughly a 28.95% upside from current levels. However, without strong volume or a catalyst, any bounce from the oversold RSI might just be a “dead cat bounce.”

Momentum remains strongly bearish. The Heikin Ashi candles show no upper wicks, indicating one-sided bearish momentum. The RSI’s 14-period moving average is trending down, meaning bulls have not shown 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.

For short-term traders, watching the RSI closely is crucial. A rebound above 30 could offer a quick 20–30% upside move. However, without a trend reversal confirmed by price structure and volume, long-term buyers should remain cautious. A break below $0.00001070 could trigger a steep fall toward the $0.00000800 level. An oversold bounce is possible, but momentum remains bearish. SHIB needs to reclaim $0.00001250+ to turn bullish again.