Shiba Inu at a Critical Crossroads Between Rebound and Plunge… Can It Break Above the 200-Day Moving Average?

▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB), which had been attempting a rebound after overcoming recent downward pressure, is now facing a sharp slowdown in upward momentum as it encounters a strong technical barrier on the 4-hour chart.

According to cryptocurrency outlet U.Today on February 17 (local time), analyst Arman Shirinyan stated that SHIB has been attempting to stabilize after breaking out of its recent bottom range between $0.0000055 and $0.0000058, but has run into strong resistance at the 200-day Exponential Moving Average (EMA). Although SHIB managed to climb above short-term moving averages with the help of dip-buying demand, it has yet to surpass the still-declining 200-day EMA.

Technical analysis indicates that the 200-day EMA on the 4-hour chart is currently acting as the strongest psychological resistance level in the market. Shirinyan noted that repeated price rejections in this zone suggest that market control remains with sellers. If SHIB fails to break through the current resistance without securing new buying liquidity, it is likely to retest its recent lows or enter a prolonged sideways consolidation phase.

From a broader perspective, including the daily chart, SHIB’s downward trend remains intact. The token has continued to form a classic bearish pattern of lower highs and lower lows over several months and is trading below key moving averages. Although some indicators show signs of recovery after emerging from oversold territory, analysts believe this is insufficient to confirm a trend reversal.

Market experts advise that for SHIB to enter a full-fledged recovery trajectory, it must establish higher support levels and sequentially reclaim key daily moving averages. In particular, a decisive close above the 200-day EMA on the 4-hour chart is necessary to expect further upward rallies. Conversely, if resistance persists at current levels, investor caution may intensify, increasing downside risks.

Ultimately, SHIB’s next move will likely depend on whether it can break through short-term resistance and on overall supply-demand conditions in the broader cryptocurrency market. Market participants are closely watching whether the price can overcome the strong resistance barrier and build a new support base. Amid mixed technical signals, SHIB’s next bout of volatility may become a critical turning point for investor sentiment across the ecosystem.

*Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for any investment losses resulting from reliance on it. The content should be interpreted solely for informational purposes.*