Shiba Inu (SHIB) Price Continues to Decline, Testing Critical Support Levels

Shiba Inu (SHIB) is under significant market pressure as its price continues to decline. Over the past 24 hours, SHIB has dropped by 10.31%

Shiba Inu (SHIB) is encountering substantial market pressure as its price continues to decline. Over the past 24 hours, SHIB has dropped by 10.31%, highlighting an increase in selling activity.

The cryptocurrency began the period at $0.00001466 but gradually trended downward, finally reaching $0.00001314. This downward movement is characterized by lower highs and lower lows, clearly indicating a bearish trend.

As SHIB approaches critical support levels, its ability to hold these levels will be crucial in determining whether a recovery is possible or if further losses are in store.

Key SHIB Support and Resistance Levels to Watch

At present, SHIB is testing critical support levels that could influence its short-term price action. The immediate support at $0.00001300 serves as a psychological barrier, and a breach of this level could trigger additional selling pressure.

The next support at $0.00001280 may attract buyers, while $0.00001250 represents a stronger historical level that could prevent a deeper decline. However, if SHIB fails to maintain these levels, further downside is likely.

Looking at the resistance levels, SHIB needs to reclaim $0.00001350 to suggest a potential rebound. Surpassing the barrier of $0.00001400 could lead to increased bullish momentum.

Moreover, breaking above the prior high of $0.00001466 would confirm a trend reversal, setting the stage for an upward move. Nevertheless, SHIB must first regain buying interest before attempting to challenge these resistance levels.

Market Indicators: RSI, MACD, and Trading Volume

Trading volume has risen by 12.11%, indicating strong market participation. While this could suggest renewed interest, the bearish sentiment remains dominant.

The Relative Strength Index (RSI) currently stands at 32.36, approaching the oversold threshold of 30. This signifies that selling pressure is high, but a potential reversal may occur if buying volume increases.

Furthermore, the Moving Average Convergence Divergence (MACD) is showing negative momentum, with the MACD line situated below the signal line. This suggests that unless SHIB finds support soon, further declines can be anticipated.

SEC’s Stance on Meme Coins: Not Securities

The U.S. Securities and Exchange Commission (SEC) has clarified its stance on meme coins like Shiba Inu (SHIB), Dogecoin (DOGE), Official Trump, and Official Melania. The regulator has stated that these assets are not classified as securities under federal law.

The commission’s Division of Corporation Finance has shared its perspective on the matter. According to the SEC, transactions in these types of meme coins do not involve the offer or sale of securities subject to registration requirements.

Instead, it categorized them as collectibles due to their speculative nature. The SEC emphasized that meme coins lack inherent utility and derive their value from social engagement and market demand rather than investment principles.

Moreover, the commission noted that meme coins fail the Howey Test, which determines whether an asset qualifies as a security. Since meme coin buyers do not invest in a centralized enterprise expecting profits, these assets fall outside the scope of federal securities regulations.

However, while transactions involving these coins do not require registration, fraudulent activities related to their sale remain subject to enforcement actions by regulatory agencies.