▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB) has plunged below even its psychological support level after months of failing to establish solid support, facing an unprecedented crisis that has effectively sent it back to price levels seen before its explosive rally in 2021.

According to crypto media outlet U.Today on March 9 (local time), despite multiple attempts at price stabilization over recent months, Shiba Inu has failed to build a strong support base, raising concerns that the market has yet to confirm a bottom. SHIB is currently trading around $0.0000053, a sharp decline compared to the peaks recorded in previous market cycles. This drop has effectively returned the asset to levels seen before the surge that once elevated it into the ranks of major cryptocurrencies.

From a technical perspective, Shiba Inu’s chart structure clearly signals a downtrend. A classic bearish pattern of lower highs and lower lows continues to unfold, indicating that selling pressure still dominates the market. Every period of sideways movement during the decline has ultimately resulted in downward breakouts, further reinforcing the overall negative momentum.

Moving average indicators also highlight the fragility of the market structure. SHIB remains below its downward-sloping long-term trendline and the 26-day exponential moving average. This positioning suggests that the market is still in a corrective phase and that short-term rebound attempts are likely to face strong resistance. Of particular concern is the absence of clear accumulation zones or the formation of horizontal support levels typically seen at genuine market bottoms.

The market is currently experiencing very low volatility while maintaining a gradual downward trend. The fact that prices have retreated to 2021 levels indicates that much of the massive speculative demand that once fueled the rally has largely evaporated. While the current price may appear to offer an attractive entry point for long-term investors seeking to buy the dip, it also signals a weakening of the asset’s market dominance.

Amid a broader downturn in the cryptocurrency market, independent rebound momentum for Shiba Inu appears increasingly unlikely. With sellers in firm control and technical indicators collectively pointing to further downside, a cautious approach to risk management is warranted for the time being. For SHIB to recreate its former glory, it will need not just a price correction but a structural recovery in demand and the establishment of strong support levels.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted solely as information.

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