Shiba Inu, Selling Pressure Rapidly Slows at Support Level..."Bears Pushed, But Failed to Create Fear"

▲ Shiba Inu (SHIB)

While it's difficult to say that Shiba Inu (SHIB) has broken out of its long-term bearish trend, recent price structures indicate that selling pressure is weakening faster than before.

According to U.Today on May 27 (local time), Shiba Inu again broke out of the narrow upward structure that had supported its price movement in April and early May. Typically, such a technical breakdown can lead to a steeper further decline, but selling forces failed to significantly breach the short-term support area around $0.00000550, and the downward momentum rapidly slowed immediately after the breakout.

The chart trend shows that selling pressure is being exhausted even as the bearish market continues. The Relative Strength Index (RSI) approached the oversold zone but did not lead to a further sharp decline. Trading volume in the recent downward phase was also relatively limited. Although the technical support level was broken, there was no widespread sell-off that shook the entire market. U.Today analyzed this as bearish forces shaking the support level but failing to spread fear.

Due to the nature of memecoins, Shiba Inu's price reacts sensitively to changes in investor sentiment. If fear selling stops, the price can stabilize suddenly even without strong buying pressure. It's possible that many investors who intended to sell during the several months of decline have already liquidated their holdings, which could explain the reduction in immediate selling volume that would continue to drive the price down.

However, the mid-to-long-term trend still remains bearish. The 50-day, 100-day, and 200-day moving averages all maintain a downward slope, and Shiba Inu's price is still trading below these moving averages. From a macroeconomic perspective, it's too early to conclude that the long-term structure has recovered. However, compared to the aggressive selling phase earlier this year, the short-term trend has clearly changed.

The key area is the support level from $0.00000540 to $0.00000550. If Shiba Inu holds above this range and reclaims the short-term resistance level around $0.00000590 to $0.00000600, the likelihood of entering a stabilization phase rather than further sell-offs increases. U.Today assessed that the current trend indicates a slowdown in bearish pressure and a potential for bottoming out, rather than confirming an imminent significant breakout.

*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.*