Shiba Inu Drops for Four Straight Days as Signs of Major Support Breakdown Roil Market

▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB) is at a crossroads for a potential further plunge within a descending channel as its key support level at $0.000006 comes under threat.

According to crypto-focused outlet The Crypto Basic on February 13 (local time), Shiba Inu has extended its decline for four consecutive days, forming lower lows within the descending channel. With buying pressure largely absent, SHIB is precariously hovering around the psychological support level of $0.000006, while intensifying downward pressure has pushed investor caution to its peak.

Technical indicators are uniformly painting a bearish outlook. On the 4-hour chart, Shiba Inu failed to break above the upper resistance of the descending channel and is now trading below both the 50-day and 200-day moving averages. Notably, the 200-day moving average is sloping downward, suppressing price action and signaling that a short-term trend reversal may be difficult.

The Relative Strength Index (RSI) has fallen to around 36, approaching oversold territory; however, the strength of the current selling pressure appears insufficient to establish solid support. The Moving Average Convergence Divergence (MACD) indicator is also expanding its negative histogram below the signal line, indicating strengthening bearish momentum. Additionally, the Fear and Greed Index has dropped to an extreme fear level of 8, further dampening investor sentiment.

The greatest immediate risk facing Shiba Inu is a breakdown below its major support level. The token is currently struggling to defend the $0.0000059 range, but if this level is breached, it could quickly fall toward the next support at $0.0000056. On the other hand, for a meaningful rebound to occur, SHIB must first break through resistance around $0.00000633 with strong trading volume.

Experts note that liquidity in the meme coin market is rapidly drying up amid Bitcoin’s (BTC) sideways movement. Shiba Inu’s 24-hour trading volume stands at approximately $138.62 million, and if the seller-dominated market environment persists, even a technical rebound driven by short-term oversold conditions may be difficult to expect. A conservative approach is advised until clear signs of a recovery in real demand emerge.

Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.