After a long period of selling pressure, Shiba Inu is starting to show signs that the worst of its downtrend may have already happened.
This signal is subtle and silent. As a result, many might easily overlook it. If the current consolidation persists, Shiba Inu could signal stabilization and a potential start of a recovery process.
Key Points
- After a long period of selling pressure, Shiba Inu is starting to show signs that the worst of its downtrend may have already happened.
- This signal is subtle and silent; Therefore, many might easily overlook it.
- The broader trend remains negative on longer time frames, but daily price action suggests that Shiba Inu is gaining strength.
- One of the most notable changes that signal a rally surge is the emergence of higher lows.
- Technically, the gap between the moving averages and price continues to narrow, suggesting that a significant move is imminent.
Shiba Inu holds his support
The broader trend remains negative on longer time frames, but daily price action suggests that Shiba Inu is gaining strength. This cooling contrasts with the intense downward dynamics which characterized the previous months. Instead of sharp breakdowns, the token is now moving sideways, suggesting that it may be chasing its base price.
Notably, this change has become clearer as the asset remains above a key support area. After falling to $0.00000507 on February 6, Shiba Inu has held above the $0.0000060 level most of the time since then as bulls continue to defend multi-year support.
Following this sharp decline, price movements have narrowed and the candles appear less aggressive. This type of structure often appears when selling pressure fades and buyers quietly begin to step in.
Signs that selling pressure is losing strength
One of the most notable changes is the emergence of higher lows. This trend suggests that the market could absorb each pullback more than before, as prices have failed to fall below an ascending trendline from previous lows, unlike previous scenarios.
The volume also tells a similar story. The sharp rises that accompanied previous declines have subsided considerably, implying that the weaker hands may already be out.
Technically, the moving averages still lie above the price and continue to act as resistance. However, the gap between these levels and the current range is narrowing. For context, the 20-day and 50-day simple moving averages sit at $0.000006281 and $0.000007331, closer to the current level. $SHIB price of $0.000006066.
Shiba Inu Graphic
This compression often precedes a stronger movement. Meanwhile, the direction of this move depends on how well Shiba Inu holds above the weekly support zone.
Why consolidation is important for $SHIB
For now, stability near recent lows is the key development. A prolonged lateral phase may serve as a base-building period, during which supply is gradually absorbed. If the process continues, Shiba Inu could attempt to push towards near resistance levels and test whether demand is strong enough to support a broader recovery.
However, outlook is not a guarantee. Losing the current support band would weaken the case for stabilization and open the door to deeper declines. On the other hand, maintaining this range and returning to short-term averages would strengthen the argument that accumulation is underway.
