Shiba Inu Faces Decline As Key EMA Rejection Fuels Bearish Outlook

Key Insights

Shiba Inu failed to sustain a breakout above a symmetrical triangle, triggering renewed selling pressure and further weakening bullish sentiment.

The price remains below the 50-day and 200-day EMAs, with rising volume on declines suggesting active selling from market participants.

Key support levels at $0.00001300, $0.00001250, and $0.00001150 could determine the next directional move for the SHIB/USDT pair.

Shiba Inu is showing renewed weakness after failing to hold above a breakout level, with sellers regaining control. The asset faced rejection at the 200-day exponential moving average, which acted as a strong technical barrier. This rejection has left the price trading below both the 50-day and 200-day EMAs.

Although trading volume has increased in recent sessions, the gains in volume have been accompanied by a price drop. This pattern indicates that sellers are actively pushing prices lower rather than buyers fueling a rally. Technical momentum has slowed significantly, with bullish strength proving insufficient to overcome major moving average resistance.

Breakdown of the Symmetrical Triangle

Over recent weeks, Shiba Inu formed a symmetrical triangle pattern, hinting at a potential breakout in either direction. The recent upside break quickly failed, trapping long positions and forcing them to exit. Such reversals often lead to sharper declines, adding to downward pressure in the market.

Source: TradingView

The lower boundary of the triangle near $0.00001300 is now the first support level traders are watching. If this support is lost, the price could test $0.00001250, a zone that previously held during consolidation before the July rally. A deeper move could reach $0.00001150, the base level from early summer trading activity.

Recovery Path Faces Heavy Resistance

For a short-term bullish structure to re-emerge, Shiba Inu would need to reclaim the $0.00001350 level and hold it with strong volume. However, with the 200-day EMA positioned just above, any recovery attempt will likely encounter significant resistance. Until this barrier is overcome, market sentiment may remain cautious.

The combination of a failed breakout, increased selling volume, and rejection at major moving averages points to ongoing pressure on the SHIB price. Current technical signals suggest that bearish momentum remains dominant, and any relief rallies could face swift resistance from overhead levels.