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After months of continuous downward pressure, Shiba Inu is beginning to show early indications of stabilization, and recent price activity indicates that the market might be moving into a more positive phase.
The most recent structure on the daily chart shows that sellers are progressively losing momentum, which could lead to the formation of a base, even though the overall trend is still bearish on longer time frames.
Decline is not that fast
The ability of SHIB to maintain above its present support zone following a steep decline is the most significant development. Higher lows are starting to show up, as the price action has changed from aggressive breakdown candles to a tighter consolidation pattern. This kind of action frequently indicates that buyers are discreetly stepping in to protect important levels as panic selling fades.
Technically speaking, any significant recovery attempt frequently requires stability close to the lows. Bulls are not yet in complete control because moving averages continue to act as strong dynamic resistance. The difference between these averages and the price is nevertheless steadily closing. Typically, this compression comes before a volatility expansion, and the path of that move will rely on SHIB's ability to hold onto its current base.
Stabilization is real
The structure supports a slow accumulation story rather than another abrupt breakdown as long as the price stays above the most recent swing low. Stabilization is further supported by volume behavior. Weaker hands may have already left the market because selling spikes from the previous sell-off have not occurred again with the same vigor.
Staying above the current support range serves as a bullish stability signal, which is the main lesson for investors. Although it does not ensure a rally, it makes it more likely that SHIB is forming a floor rather than going into another leg down.
If buyers are successful in regaining short-term moving averages and pushing the price back toward the closest resistance zones, the asset may enter a recovery phase with increased upside volatility.
Patience is key to what comes next. While a loss of support would refute the stability thesis, a gradual sideways grind followed by a breakout would validate accumulation. SHIB seems to be in a decision-making phase right now, one that could determine its next big move.
Vladislav Sopov
Dan Burgin