The well-known meme-based asset Shiba Inu is on the verge of suffering a psychological and technical setback as it approaches a crucial tipping point and is on the verge of adding a zero to its price again.
Presently trading at $0.00001079, SHIB is holding on to its last significant support level at $0.00001000 after losing several important support zones. Gains over the previous few months could be erased by a steep decline if the daily close falls below this level. From a technical perspective, the trend is clearly bearish. A sustained downtrend and long-term weakness are confirmed by the downward slopes of the 50, 100 and 200-day moving averages.
With little indication of a reversal and rising selling pressure, the RSI has fallen below 40. A common indicator of buyer fatigue and bear dominance is the steadily declining volume. Any attempt at a recovery has encountered strong opposition as evidenced by the declining price action and the regular rejection at moving averages.
The majority of SHIB's recent attempts to stabilize have been unsuccessful, and there isn't much evidence of a short-term shift in direction in the absence of a powerful bullish catalyst. The mood of investors is brittle. SHIB is primarily dependent on retail enthusiasm due to its hype-driven nature, which is currently declining as the market as a whole declines.
Short-term bullish setups have been invalidated by the break below $0.00001234, a previously strong support level, leaving the token vulnerable to a freefall scenario. Unless buyers intervene forcefully at the $0.00001000 threshold, Shiba Inu's value may now fall into the sub-$0.00001000 range, essentially adding a zero to its price.
This would be a symbolic retreat that could seriously undermine investor confidence and lead to further selling. Bulls are not supported by the overall setup, but short-term optimism is still based on a recovery from current levels. Unless there is a sharp increase in volume or a market reversal that seems to stop the bleeding, investors should expect increased volatility and be ready for more declines.
