Shiba Inu (SHIB) Price Breakdown Ahead? Key Indicators Signal a 9% Drop

Shiba Inu Price Under Pressure: Bearish Pattern Could Trigger Liquidations

Shiba Inu (SHIB) saw a short-lived bullish breakout earlier this month, briefly raising hopes among traders. However, the move above the lower timeframe channel failed to hold, and technical indicators now suggest that bearish momentum is gaining strength.

Descending Triangle Signals a Bearish Reversal

In the second week of May, SHIB surged toward $0.000017, but failed to break past this key resistance level, which had previously acted as a lower high in mid-February. Since then, SHIB has declined toward $0.000014, the upper boundary of its former trading range.

A descending triangle pattern has formed, with lower highs reflecting sustained selling pressure. A daily session close below $0.0000142 would confirm a bearish shift in market structure, making further downside more likely.

Technical Indicators Point to Weakening Demand

While the 20-day and 50-day moving averages still indicate a bullish trend, the strength behind the move has noticeably weakened. The Chaikin Money Flow (CMF) dropped to the neutral zone, showing lack of capital inflows, while the On-Balance Volume (OBV) has remained flat throughout May—both signs of waning demand.

Liquidation Data Supports Bearish Scenario

The liquidation heatmap adds to the bearish outlook. Over the past ten days, a liquidity cluster has formed just below $0.000014, close to SHIB’s current support level. This suggests that a 3% drop could trigger a wave of liquidations and accelerate downward momentum.

If this bearish breakdown materializes, SHIB could fall to the mid-range support at $0.0000129, representing a potential 9.3% drawdown from current levels.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.