Shiba Inu's Downward Spiral: What's Next for the Meme Coin?

Shiba Inu, the popular meme coin, has been on a rough patch lately. Its value has dropped by 7% in a single day, bringing its monthly loss to over 26%. This isn't just a small blip; it's a significant decline that has investors worried. The coin's price has fallen below a crucial support level that had held steady for months. This break is a red flag, showing that the coin's downward momentum is gaining strength. The daily chart paints an even grimmer picture, with a clear downward trend and major moving averages all above the current price. This setup suggests that unless Shiba Inu can reclaim the $0. 0000105 mark soon, it could be headed for further losses, possibly retesting the $0. 0000068–$0. 0000070 range. Investor confidence is also taking a hit. Exchange data shows a spike in outflows, with $3. 1 million worth of Shiba Inu being withdrawn in a single day. This trend, combined with a lack of significant inflows, points to a lack of market demand and a heightened risk of continued sell pressure. The coin's recent performance has been one of the worst among major cryptocurrencies, with a 24-hour decline of 7. 5%, a weekly loss of 20. 8%, and a monthly drop of 26%. Shibarium, Shiba Inu's layer-2 network, was supposed to bring some utility to the coin. However, its adoption has been slow, and it hasn't been enough to offset the token's massive circulating supply of 589 trillion coins. In comparison, Dogecoin, another popular meme coin, has stronger community-driven momentum. Unless buyers step in soon, the technical setup points toward a continued slide. Resistance remains overhead at $0. 0000105, followed by $0. 0000119 and $0. 0000132. Market observers say that only a sustained close above the 50-day EMA would signal the start of a meaningful recovery phase.