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Shiba Inu just painted one of the summer's most agonizing chart reversals. Following an apparent robust rebound in July, SHIB bulls are currently battling a severe correction that has wiped out almost all of their recent gains, and it is not just a pullback. An important technical breakdown that could influence SHIB's direction in the coming weeks is indicated by the decline below the 50-day EMA.
SHIB Not Holding Up
At first, it appeared as SHIB would be able to hold above important moving averages and regain the $0.00001400 zone. However, what really happened was a classic bull trap. The price jumped, attracted momentum, baited some bullish traders and rapidly falled back. A bearish shift in market sentiment is confirmed by the break below the 50 EMA. SHIB, which is currently trading at about $0.00001223, is now really close to another structural support.
A freefall toward $0.00001100 or even lower is still possible if that one breaks too. The dynamics of volume are just as bad, to be honest. The fact that the most recent decline coincided with growing selling pressure indicates that this is more than just a small dip being bought; it represents a more general lack of confidence.
Key Metrics Fall
Although the RSI is heading toward oversold territory and falling below the neutral 50 level, it is not yet displaying any significant divergence or signs of recovery. Investing now should be done with caution rather than rashly buying dips. Reconsidering your risks could be the key here. SHIB's short-term outlook is being reconsidered right now, and it is not in bulls' favor, unfortunately.
The momentum will continue to favor the bears unless there is a clear reversal and SHIB can regain the 50 EMA. Shiba Inu breakdowns are usually nonrefundable and quite often end up being the beginnings of a prolonged downtrend or a choppy market. Unless the bulls move quickly, the price may be dragged lower by this technical rejection. What comes next could be carnage, but this summer rally might have been the bait.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team