"Not a Breakthrough, but a Trap"...Shiba Inu Faces Support Line Crisis as Rising Wedge Collapses

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) is facing selling pressure after failing to sustain its recent breakout attempt. With increasing selling volume and technical indicators and volume structure leaning bearish, market attention is shifting towards the possibility of further declines rather than a short-term recovery.

U.Today reported on May 22 (local time) that Shiba Inu is experiencing strong selling pressure, unable to maintain its recent breakout attempt and being pushed down by increased selling volume. Even as some assets in the cryptocurrency market show upward trends, Shiba Inu appears to be trapped in a prolonged downtrend without clear signs of reversal.

The most concerning aspect is its deviation from the rising wedge pattern that had been forming since March. Shiba Inu temporarily attempted to overcome the descending resistance line, but selling pressure quickly regained dominance, pulling the price below key short-term moving averages and trend support lines. This failed breakout now carries a high risk of turning into a typical bull trap.

The volume flow is also adding to the burden. Analysis suggests that participation in the downward phases is starting to outweigh recovery attempts, indicating a trend closer to distribution than accumulation. As meme coins like Shiba Inu heavily rely on speculative momentum and retail investor interest, a shift where trading volume is higher during downtrends than during recovery periods is interpreted as a bearish signal.

Technically, Shiba Inu is still trading below its 200-day moving average. The 200-day moving average continues to decline, supporting a larger bearish structure. Additionally, the 50-day and 100-day moving averages are compressing from above, creating layers of resistance. Buyers have repeatedly failed to reclaim these levels.

The same weakness was confirmed in momentum indicators. The Relative Strength Index (RSI) is still falling and has turned down below the neutral zone, indicating weakening buying interest. Unlike strong assets currently in an expansion phase, Shiba Inu remains in a low-conviction sideways consolidation, and its structure is deteriorating further.

The current critical support level is around $0.00000550, where the recent short-term low was formed. Failure to hold this level could accelerate the decline again, as traders liquidate positions and short-term holders exit.

Conversely, for a meaningful recovery to gain traction, buyers must first reclaim the breakdown point of the rising wedge pattern and push the price above the 100-day moving average. Given that Shiba Inu's sell-dominant structure has strengthened since the failed breakout, the defense of the $0.00000550 support line has emerged as a key variable determining the short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*