Shiba Inu Rebound Is False, Support Level Breakdown Imminent

▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB) is facing one of its worst moments as it succumbs to downward pressure without securing key technical support levels, eroding investor confidence.

According to crypto media outlet U.Today on February 24 (local time), Shiba Inu is struggling amid intense market pressure. The overall market structure remains bearish, and recent attempts at price recovery have failed to generate meaningful momentum. The pattern of weak short-term rebounds followed by renewed declines clearly shows that control of the market still lies with sellers rather than signaling a genuine trend reversal.

From a technical perspective, Shiba Inu remains trapped below major downward-sloping moving averages, which are acting as strong resistance levels. Each time selling pressure intensifies and the price approaches these levels, long-term bullish momentum is effectively suppressed. Although there has been a slight rebound along a short-term upward trendline, this is viewed as a temporary pause within a massive downtrend that has persisted for months.

A lack of strong buying conviction is a key factor darkening Shiba Inu’s outlook. Surges in trading volume have been observed primarily during price declines rather than rallies, suggesting that investors are using rebounds as exit opportunities to minimize losses rather than as buying opportunities. This behavior is widely interpreted as a typical bearish signal seen during prolonged correction phases marked by weakened investor sentiment.

With Bitdeer heightening market anxiety by selling its entire holdings of 1,132 BTC, the likelihood of a swift recovery for Shiba Inu in the short term appears very low. To reverse its downward trajectory, Shiba Inu would need to break above multiple moving averages and reclaim key resistance levels, but all such attempts have failed so far. If current support levels collapse, additional sell-offs could follow, potentially accelerating the decline.

Shiba Inu is currently under significant pressure as short-term investors offload holdings amid negative sentiment, threatening its technical support base. Should the support trendline break, downward pressure would intensify further, reinforcing the existing bearish structure. Rather than improving, the situation is more likely to deteriorate, and investors are now confronted with the urgent need to prepare for further price declines and focus on risk management.

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