Shiba Inu (SHIB) Price Prediction: Will the Meme Coin Rebound From Its Recent Decline?

The cryptocurrency market remains highly volatile, and Shiba Inu (SHIB), one of the most popular meme coins, has experienced a significant decline in recent weeks.

The cryptocurrency market remains highly volatile, and Shiba Inu (SHIB), one of the most popular meme coins, has experienced a significant decline in recent weeks. Over the past 30 days, SHIB has plummeted by 12.34%, reaching a two-week low as bearish sentiment grips the market. The token faced multiple rejections at the $0.000015 resistance level and struggled to break out of a descending triangle, leading to intense selling pressure.

Despite these losses, Shiba Inu investors have responded aggressively, accumulating large amounts of SHIB, signaling a potential reversal in the near future. However, whether this accumulation will be enough to spark a recovery remains uncertain. In this article, we analyze the current market trends, technical indicators, and on-chain metrics to determine SHIB’s possible trajectory.

Shiba Inu’s Performance: A Closer Look

As of this writing, Shiba Inu is currently trading at $0.00001217, showing a 4.02% decline on the daily chart. The token has also suffered a 7.4% drop over the past week and a 12.34% decrease over the last month. This consistent downward trend has left investors wondering whether SHIB can manage to recover or if further losses are on the horizon.

The price decline has been driven by multiple factors, including technical rejection at critical resistance levels, negative sentiment in the broader cryptocurrency market, and profit-taking by short-term traders.

Rejection at $0.000015 and the Impact of a Descending Triangle

One of the primary reasons behind SHIB’s decline is its repeated failure to break above the $0.000015 resistance level. This level has acted as a psychological barrier for traders, preventing the token from making a sustained upward move. After several attempts to pierce through this point, sellers emerged, pushing the price back down.

Additionally, Shiba Inu has been trading within a descending triangle pattern, a bearish technical formation that usually signals further downside. After multiple unsuccessful attempts to breakout from the triangle, the price eventually dropped below the support zone, leading to additional selling pressure.

This technical breakdown triggered stop-loss orders and enticed traders to open short positions, contributing to the continuation of the downtrend.

Shiba Inu Investors Respond With Massive Accumulation

Despite the ongoing decline, on-chain data suggests that Shiba Inu investors are actively accumulating the token. This buying activity indicates that some traders and whales believe the current price levels offer a strong opportunity to buy SHIB at a discount.

Specifically, on-chain analytics platform IntoTheBlock's data reveals that large cryptocurrency traders, also known as whales, have been massively accumulating Shiba Inu in recent weeks. According to the analysis, at least 50 "whales" are holding between $10 million and $25 million in SHIB.

This accumulation phase could be a prelude to a significant recovery, as increased demand eventually overwhelms selling pressure. If this trend continues, it may provide the momentum needed for SHIB to rebound from its recent losses.

Key Technical Indicators and Their Implications

1. Relative Strength Index (RSI) Suggests SHIB Is Oversold

The Relative Strength Index (RSI) is a momentum indicator that measures whether an asset is overbought or oversold. Typically, RSI readings above 70 indicate overbought conditions, while readings below 30 suggest oversold territory.

Currently, SHIB’s RSI is approaching oversold levels, suggesting that the selling momentum may be exhausted soon. This indicates that sellers are becoming less interested in selling the token at lower prices.

If RSI continues to remain in the oversold zone for an extended period, a reversal could be on the horizon, as buyers look to capitalize on discounted prices and drive the token higher.

2. Moving Averages Indicate Bearish Sentiment

Shiba Inu’s 50-day and 200-day moving averages are showing bearish momentum, with the shorter-term moving average trending below the longer-term moving average. This pattern, known as a death cross, is a classic bearish signal that usually leads to continued downward movement and lower lows.

However, if SHIB can regain strength and push above key moving averages, it could indicate a shift in sentiment and open the doors for a recovery. A move above the 50-day moving average might invite more buyers into the market, setting the stage for a potential rally.

3. Trading Volume: Increased Buying Activity Could Signal a Reversal

Trading volume is a crucial indicator of market sentiment. High trading volume signals strong interest in an asset, while low volume indicates low activity and possibly fatigue in the market.

Over the past few days, SHIB’s trading volume has shown signs of increasing as investors continue to accumulate the token. This indicates that there is still enthusiasm for SHIB, despite its recent decline.

A spike in volume combined with price