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Shiba Inu has once again failed to recover a crucial psychological price level, and the meme coin is being sharply rejected in the vicinity of $0.000005. SHIB attempted a modest recovery after displaying signs of stabilization in late June, but it soon encountered intense selling pressure, which strengthened the larger bearish structure that has dominated the asset for months.
SHIB is still stuck below all of the major moving averages on the daily chart. The 100-day and 200-day moving averages are still well above the current price levels, indicating how weak the longer-term trend is, while the 50-day EMA continues to function as dynamic resistance.
Shiba Inu failed to breakthrough
Throughout the year, every attempt at recovery has eventually been sold into, and the most recent rejection seems to fit the same pattern. Technically speaking, SHIB recently broke down from a rising wedge formation that had been forming from March to May. These patterns usually end in a decline, and the ensuing drop supported that bearish view. Since then, the asset has had trouble generating significant buying momentum.
The most recent increase followed a brief decline in SHIB toward local lows at $0.0000040. As the token got closer to the crucial $0.000005 region, buyers were able to initiate a brief rebound, but the movement nearly immediately stalled. Both technically and psychologically, that level is important.
Why it's crucial to make a comeback
A reclaim of that level would have opened the door to a challenge of the 50-day EMA and possibly broader recovery. Instead, before SHIB could gain any ground above resistance, sellers intervened forcefully and drove the price back down. The rejection implies that despite sporadic spikes in optimism throughout the cryptocurrency market, market participants are still hesitant to acquire riskier assets.
Additionally, volume has not been able to sustain a narrative of reversal. In contrast to the spikes observed during earlier rallies and selloffs, recent trading activity is still comparatively muted. SHIB might keep moving within its present bearish channel in the absence of a significant rise in demand. The immediate goal for bulls is still to recover and hold above $0.000005.
Every short-term rally until then runs the risk of turning into another lower high in a larger downtrend. A successful breakout above local resistance would be required to turn momentum back in favor of buyers, but if selling pressure continues, SHIB may return to its recent lows.
Dan Burgin
U.Today Editorial Team
