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▲ Shiba Inu (SHIB)/ChatGPT generated image
Shiba Inu (SHIB) has lost its short-term ascending channel support, trapping it in a technically bearish zone where warnings of further declines are stronger than attempts at a rebound.
According to cryptocurrency media outlet U.Today on May 26 (local time), Shiba Inu has been following a structurally weak trend after breaking below the short-term ascending channel. Although the rate of decline has somewhat slowed near recent lows, this breakout indicates that selling pressure still dominates the overall trend.
Shiba Inu maintained its price movement within a narrow recovery wedge structure in April and early May. However, it recently failed to hold the lower boundary, quickly falling below the short-term moving average, and the small bullish structure that had been difficult to form during the recovery process also collapsed. On the chart, it is closer to a temporary slowdown in selling pressure rather than a recovery of dominance by buying power.
The market is currently seeking support around $0.00000550. The problem is that trading volume remains sluggish. The rapid failure of rebound attempts suggests that traders are using upward movements not as aggressive buying opportunities but as selling opportunities to reduce their holdings. The Relative Strength Index also remains in a weak zone in the early 40s and has not yet reached a fully oversold area.
Theoretically, Shiba Inu carries the risk of entering a larger correctional phase. If selling pressure continues to push below the broken channel, the price could revert to the past accumulation zone near the psychological support level of $0.00000500. If even that zone disappears, Shiba Inu could be exposed to a larger structural decline.
For a bullish reversal, Shiba Inu needs to reclaim the moving average resistance zone formed between $0.00000600 and $0.00000630 and re-enter the previous ascending structure. Until these conditions are met, the trend continues with selling pressure dominating from a trend continuation perspective.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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