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As the meme coin continues to decline to new local lows, Shiba Inu is once again under tremendous selling pressure, indicating that bearish control over the asset is still firmly in place.
Bullish setups invalidated
According to the most recent price action, SHIB broke below a consolidation structure that had momentarily provided hope for stability before collapsing due to fresh market pressure, and what appeared to be a possible recovery setup was invalidated on the daily chart when SHIB failed to hold the support zone close to recent January lows.
The asset printed another leg downward, pushing the price below crucial short-term support and strengthening the long-term downtrend that has been in place for months rather than creating a higher low and trying to reverse the trend.
Technically speaking, SHIB is still trading far below its major moving averages, which include the downward-sloping 50, 100 and 200-day lines, usually this alignment indicates persistent bearish momentum as opposed to a brief correction.
Pressure is rising
Sellers continue to dominate every bounce, as evidenced by the rejection of every rally attempt over the last few weeks in the vicinity of these dynamic resistance zones, and exchange metrics also indicate that pressure is ongoing.
Current data indicates that supply is still outpacing demand, and rising inflows to exchanges typically indicate that holders are getting ready to sell rather than accumulate, the setup suggests that the recent decline is not an isolated incident but rather part of a larger continuation of the downtrend when combined with declining momentum indicators.
More significantly, this breakdown undermines the bullish narratives that are still in place about SHIB, and the loss of support resets market expectations toward additional downside risk contrary to many traders' expectations that a consolidation phase would precede a recovery attempt.
U.Today Editorial Team
Dan Burgin
