Shiba Inu Price Falls Below Key EMAs as Bearish Momentum Grows

Shiba Inu (SHIB) has shown signs of bearish pressure following a failed breakout above a symmetrical triangle and a rejection at the 200-day exponential moving average (EMA). The inability to sustain gains above this critical technical level has led to renewed selling, with the price remaining below both the 50-day and 200-day EMAs [1]. This development has fueled concerns about the token's short-term trajectory and reinforced a bearish outlook among market participants.

The recent price action has been accompanied by rising trading volume, but the increased activity has coincided with downward movement rather than upward momentum. This indicates that selling pressure is dominant, with traders actively offloading positions rather than buyers pushing prices higher [1]. The technical indicators currently reflect weakening bullish strength and a lack of conviction among market participants to drive a meaningful recovery.

Key support levels are now under scrutiny as potential turning points for the SHIB/USDT pair. Traders are closely watching the $0.00001300 level, which represents the lower boundary of the recent symmetrical triangle. A breakdown below this level could push the price toward $0.00001250, a zone that previously acted as a consolidation level before a rally in July. A further decline could test $0.00001150, the base of earlier summer trading activity [1].

The failed breakout from the triangle has led to sharp liquidation of long positions, increasing downward pressure on the price. This type of reversal often signals a shift in market sentiment, with sellers regaining control and buyers becoming more cautious. The inability to maintain a bullish trend following this pattern highlights the fragility of SHIB's recent momentum [1].

For any short-term bullish recovery to take hold, the token would need to reclaim the $0.00001350 level with strong volume. However, the 200-day EMA remains a significant barrier, and overcoming it would be essential for rebuilding market confidence. Until SHIB can establish a clear and sustained move above these key moving averages, the bearish bias is likely to remain intact [1].

The broader market context also points to a lack of catalysts that could support a significant rally in SHIB. While other cryptocurrencies like Solana (SOL) have shown resilience in the face of similar technical challenges, SHIB has not demonstrated comparable strength. This divergence highlights the token’s vulnerability in a market that remains cautious and selective [1].

Traders and analysts emphasize that a recovery in SHIB would require more than just a technical reversal. Fundamental developments—such as increased utility, adoption, or real-world use cases—would be necessary to reignite demand and shift the narrative around the token. Until such developments materialize, the bearish momentum is expected to persist [1].

Source:

[1] Shiba Inu Faces Decline as Key EMA Rejection Fuels Bearish Outlook (https://cryptonewsland.com/shiba-inu-faces-decline-as-key-ema-rejection-fu/)