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A distinct downtrend structure can be seen in the price action over the last few weeks, with SHIB continuously trading below its main moving averages, but the slight recovery we saw since the end of November could turn into something more meaningful if the price keeps printing higher lows. However, the fact that the 50 EMA, 100 EMA and particularly the 200 EMA are all above the asset and sloping downward indicates that the overall trend is still negative. There is no question about that.
It is getting better
The short-term behavior close to the lows is shifting. SHIB has stopped aggressively selling off. Rather, it is compressing into a narrow range, creating an ascending structure at the bottom that is shallow. This type of price movement typically indicates seller fatigue rather than revitalized confidence.
The market is no longer experiencing panic exits because volume has considerably decreased in comparison to the earlier breakdown phase. This is crucial because dead assets bleed rather than consolidate.
Investors should currently be expecting an increase in volatility. Such phases of compression are short-lived. Direction is the crucial question, and the odds are divided in this case.
While RSI stays neutral and stays out of deep oversold territory, SHIB is trying to hold above its most recent local lows on the bullish side. That makes room for a relief rally, particularly if sentiment on the market as a whole stabilizes. The first realistic upside target would be a push toward the declining 50 EMA rather than a moonshot. Without a clear break above that level, any discussion about immediate zero removal is premature.
Shiba Inu's lack of structure
The macro trend continues to dominate the bearish side. SHIB will have very little structural support if it loses this consolidation base. A breakdown would probably result in another leg lower, motivated by apathy rather than fear — possibly worse for price.
What comes next? A decision should be made shortly. Either SHIB quietly fails and enters another gradual decline, or it breaks upward out of this tightening structure and provides a corrective bounce.
This is not a place for investors to expect fireworks. Instead of being a breakout phase, this is a positioning phase. If strength does emerge, it will do so gradually, and only after important moving averages have been recovered. SHIB remains in survival mode rather than revival mode until that point.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team