After immediately encountering a significant technical obstacle, Shiba Inu’s most recent attempt at recovery seems to have lost steam. With sellers swiftly regaining control and forcing the token back into a short-term bearish structure, SHIB has failed to establish itself above the psychologically significant resistance near $0.00000500 after last week’s explosive breakout.
Shiba Inu failed to break through
Because it happened precisely where several resistance factors converged, the rejection is especially noteworthy. The 50-day moving average is close to the $0.00000500 mark, and SHIB immediately reversed after briefly testing that level. After the initial rally, the most recent daily candles show lower highs emerging, indicating that bullish momentum is waning rather than increasing.
The short-term trend has entered correction mode from a technical perspective. The price has fallen below the 20-day moving average, while the 50-day average is still acting as resistance above. Despite the fact that the 100-day and 200-day moving averages are still much higher, the overall bearish trend is unaffected by the failure to recover the first significant resistance.
The cooling mood is also reflected in momentum indicators. The RSI has moved back from overbought territory to about 53, indicating a significant weakening of buying pressure without yet reaching oversold levels. If sellers continue to have control over the upcoming sessions, that leaves room for further negative outcomes.
Shiba Inu enters bullish position
Over the course of the last day, long liquidations have predominated, wiping out about $176,000 in bullish positions as opposed to just under $13,000 in short liquidations. The speed at which leveraged traders were driven out after the rejection is demonstrated by this disparity.
While futures flows have turned negative over longer intervals, indicating that speculative traders have become significantly more cautious than spot buyers, spot market flows are still generally positive, showing positive net inflows across most short-term time frames. The picture is further complicated by on-chain metrics.
Over the course of the last day, exchange reserves have slightly increased along with overall exchange inflows and netflows. In general, those developments show that more SHIB is becoming available on trading venues, which could increase selling pressure in the near term if holders choose to realize recent gains.
The first support is currently located close to the rising 20-day moving average at $0.00000465. The recent breakout area at $0.00000445 would be revealed if the price broke below that level. Regaining the 50-day moving average is still the primary goal for bulls.
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