Shiba Inu (SHIB) Price Performs Huge Fakeout. Here’s the Significance

Shiba Inu (SHIB) has experienced a significant drop in price following what initially appeared to be a successful breakout. The cryptocurrency briefly surpassed the $0.000014 resistance level but was quickly rejected, sharply declining. This price action now raises concerns about further downside movement as SHIB struggles to regain momentum.

Failed Breakout and Rejection at Key Resistance

SHIB initially showed signs of strength by breaking above the $0.000014 resistance level, which had previously acted as a significant barrier. However, the price failed to sustain its upward movement and quickly fell below this threshold. The abrupt rejection triggered a series of sell-offs, indicating that the breakout was not genuine.

This price movement often signals a bull trap, where traders enter the market expecting a sustained rally, only for the asset to reverse sharply. The failure to hold above $0.000014 has now set a bearish precedent, reinforcing the downward trend that the token has entered.

Moving Averages Reinforce Bearish Sentiment

SHIB’s inability to remain above its key moving averages further strengthens the bearish outlook. The 50-day and 200-day moving averages now act as dynamic resistance levels, preventing sustained recovery. As long as the price remains below these indicators, upward momentum will likely remain weak.

Currently, the asset has broken below its support at approximately $0.000013. In light of continued selling pressure, the asset has declined to $0.0000126 . The situation becomes even more concerning if SHIB falls below this zone, as it may target the $0.00001150 support level. A break below this point would significantly increase the likelihood of a steeper decline.

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Market Indicators Show Weak Buying Pressure

Technical indicators suggest that SHIB is still in a weak position. The Relative Strength Index (RSI) remains bearish, indicating a lack of strong buying pressure. Without a noticeable improvement in RSI, a meaningful recovery is unlikely in the near term.

Another factor contributing to SHIB’s struggles is the decline in trading volume. Lower volume suggests waning investor interest, making it more difficult for SHIB to sustain a prolonged rally. Without increased demand, the token may continue to face downward pressure.

Outlook: Caution Advised for Traders

With SHIB reverting to a bearish trajectory, traders should approach with caution. If the price fails to recover above key resistance levels soon, the chances of further downside remain high. The market lacks clear signals of reversal, meaning SHIB could continue to decline unless strong buying momentum reemerges.

Despite this downturn, some Analysts like Javon Marks predict a price target of $0.000081 , representing a potential gain of over 450% from current levels.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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