Key Takeaways
- SHIB plunged 10% in 24 hours as geopolitical tensions triggered widespread panic-selling across the market.
- The memecoin broke below the critical $0.000012 support, indicating a potential extended correction.
- On-chain data reveals a resistance zone between $0.000012 and $0.000014, where many holders are at a loss.
Like much of the crypto market, Shiba Inu (SHIB) suffered in the last 24 hours, dropping 10% amid a wave of panic-selling triggered by rising geopolitical tensions.
The sharp decline has sparked concerns of deeper losses as bearish pressure mounts. But does this mean SHIB is headed for another leg down—or is a rebound in sight?
Let’s break it down.
Shiba Inu Breakdown Accelerates
Since May 10, SHIB’s price has been trading inside a descending triangle—a bearish pattern defined by a falling trendline and horizontal support at $0.000012.
As of this writing, the meme coin has broken below that key support level, signaling a potential breakdown. This move puts SHIB at risk of a deeper correction.
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Beyond the drop below the support line, the Awesome Oscillator (AO) has fallen to the negative region. The AO measures momentum by comparing historic price movements with recent ones.
When the AO is positive, momentum is bullish. But when it is negative, momentum is bearish. Therefore, the current reading on the SHIB/USD chart indicates rising bearish momentum around SHIB.
Should this remain the case, then SHIB’s price might experience a potential drop below $0.000010.
To make matters worse, CCN analysis shows that the red line of the Supertrend indicator has flipped above SHIB’s price, signaling strong overhead resistance.
This bearish alignment suggests that any upward move could face rejection, further limiting SHIB’s chances of a short-term rebound.
From an on-chain perspective, the In/Out of Money Around Price (IOMAP) shows resistance between $0.00012 and $0.00014.
At the current price range, the volume of SHIB tokens held at a loss far outweighs those in profit. That imbalance creates a potential sell wall as the token tries to retest the $0.000012 level.
If holders rush to exit at breakeven, SHIB could face renewed selling pressure, pushing the price back toward $0.000010 or even lower.
SHIB Price Analysis: Further Downturn
A closer look at the daily chart reveals that SHIB’s price has formed a classic head-and-shoulders pattern, typically a bearish setup that signals an impending trend reversal.
This formation strengthens the case for further downside, especially if SHIB fails to reclaim key support levels soon. Amid this setup, the Chaikin Money Flow (CMF) reading has dropped below the zero signal line.
The breakdown points to intensifying selling pressure. If left unchecked, it could send SHIB below the $0.000010 mark, as previously noted.
However, this bearish outlook may be invalidated if buying interest returns and demand pick up. In that case, SHIB could stage a rebound toward $0.000016.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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