 ▲ Shiba Inu (SHIB) Coin |
Shiba Inu (SHIB) has entered a phase of extreme market fear as it remains trapped in a descending channel amid persistent selling pressure, facing the risk of a breakdown below key technical support levels.
According to cryptocurrency outlet The Crypto Basic on March 3, Shiba Inu has continued its clear bearish trend on higher time frames, repeatedly forming lower highs and lower lows. Although buyers have attempted to stage rebounds, large inflows of tokens into exchanges have suppressed price gains and intensified downward pressure. Notably, approximately 110 billion SHIB flowed into exchanges over the past 24 hours, heightening concerns over a potential wave of sell-offs.
Technical indicators show that the Relative Strength Index (RSI) remains in neutral territory, while the Moving Average Convergence Divergence (MACD) histogram continues to linger in negative territory, suggesting that bearish momentum remains strong. Analysts warn that unless Shiba Inu breaks above the upper resistance line of the descending channel, sellers are likely to tighten their control over the market. With buying support weakening, sell-offs have repeatedly emerged during each rebound attempt.
Shiba Inu now faces a critical test at the key support level around $0.0000055. If this support collapses, the price could decline further toward the next support level at $0.0000050, with additional downside risk stemming from ongoing macroeconomic uncertainty. On the upside, reclaiming and holding above the $0.0000065 resistance level is essential for any recovery. However, given the prevailing bearish market sentiment, a short-term breakout appears unlikely.
On the macroeconomic front, elevated inflation data has dampened appetite for risk assets such as cryptocurrencies, casting a shadow over the broader memecoin market including Shiba Inu. With the Fear and Greed Index hovering between 15 and 16, signaling extreme fear, investors are maintaining a wait-and-see stance rather than entering new positions, seeking confirmation of a market bottom. Increased exchange inflows are being interpreted as a sign that holders are preparing to sell, further hindering price recovery.
While technological advancements within the Shiba Inu ecosystem and ongoing token burn initiatives are viewed as potential drivers of long-term value growth, their impact remains limited under current market conditions. Investors are advised to respond conservatively by monitoring meaningful changes in trading volume and a decisive break above key resistance levels rather than reacting to short-term price fluctuations within the descending channel. The rest of March will serve as a watershed moment in determining whether Shiba Inu can defend its support and lay the groundwork for a rebound or deepen its bearish trajectory.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. We are not responsible for any investment losses incurred based on this content.