 ▲ Shiba Inu (SHIB) |
Shiba Inu (SHIB) has entered a precarious phase with growing risks of further price decline after invalidating all of the bullish technical setups it had maintained in early 2026.
According to crypto-focused outlet U.Today on February 24 (local time), Shiba Inu has undergone a steep price correction in recent days, completely dismantling the bullish reversal scenario anticipated by the market. Technical analysts noted that SHIB failed to defend its key support zone between $0.0000065 and $0.000007, erasing the accumulated buying momentum. In particular, as the price fell below both the 50-day and 200-day exponential moving averages, market control has decisively shifted back to the bears.
The breakdown in Shiba Inu’s technical structure was driven primarily by a sharp decline in trading volume and weakening investor sentiment. With the Relative Strength Index (RSI) dropping below the neutral zone, buying pressure has largely disappeared. At the same time, activity indicators on the Shibarium network have stagnated, undermining confidence in ecosystem growth. Investors are focusing on SHIB’s failure to solidify support during the retest phase following its breakout from a consolidation range. As a result, even the psychological impact of the large-scale token burn program, Shibburn, scheduled for the first half of 2026, has been significantly diminished.
Market experts warn that SHIB could slide further toward a major liquidity zone near $0.000005, attributing the decline to the broader bearish trend affecting the meme coin sector. This would represent a drop of more than 80% from its peak. Coupled with a macroeconomic environment in which major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are weakening due to geopolitical risks, the pressure on Shiba Inu has intensified. As the Fear and Greed Index remains stuck in the extreme fear zone, an aggressive rebound scenario for SHIB appears unlikely in the near term.
For Shiba Inu to attempt a technical reversal, it would need to reclaim the broken support level as resistance and demonstrate a strong recovery accompanied by robust trading volume. However, on-chain data suggests that whale investors have begun liquidating their holdings, making a short-term restoration of the technical setup challenging. Despite optimism within the community on social media platforms such as X (formerly Twitter), the lack of tangible demand on the charts remains SHIB’s biggest hurdle.
In conclusion, Shiba Inu is assessed to have entered a technical dark phase after surrendering its last remaining bullish setup of 2026. For now, risk management from a conservative standpoint is paramount until key resistance levels are reclaimed. Global investors are closely watching whether the Shiba Inu ecosystem can demonstrate real-world use cases and restore its broken technical indicators.
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