Shiba Inu has entered a consolidation phase after being rejected near the $0.000009 resistance level. The meme coin’s price action suggests a technical reset rather than a structural breakdown. SHIB has anchored itself around the 26 exponential moving average, a level that historically marks critical support during recovery phases.
The cryptocurrency did not experience a cascading sell-off following the rejection. Instead, the pullback occurred in an orderly fashion with declining volume. At the time of writing, SHIB trades at around $0.00000840, suggesting a 2.08% decline in the last 24 hours.
SHIB’s price action over the past 24 hours (Source: CoinCodex)
Controlled Retreat Signals Market Strength
Sharp rejections typically trigger immediate lower lows when distribution dominates. SHIB’s price action demonstrates a different pattern. The asset stabilized quickly after the initial rejection. Volume metrics cooled rather than spiked during the pullback. These technical signals point toward profit-taking rather than panic selling.
The 26 EMA now functions as a dynamic pivot point for the token. Maintaining levels above this moving average suggests the market is attempting to rebuild momentum. Historical data from previous SHIB cycles shows that sustained interaction with this technical level often preceded multi-week recoveries. This pattern holds particular relevance when broader market conditions avoid extreme risk-off sentiment.
The $0.000009 rejection itself carries limited bearish implications. This price zone aligns with heavier moving averages that naturally create resistance. Failure to breach this level indicates SHIB requires additional time to absorb overhead supply. The absence of a post-rejection collapse distinguishes this scenario from a trend reversal. True structural weakness would manifest through accelerating downside momentum.
Momentum Indicators Point to Healthy Reset
The Relative Strength Index has pulled back from regional highs without entering oversold territory. This technical development suggests momentum is cooling rather than breaking down. The indicator’s behavior suggests a market consolidating gains rather than losing structural integrity. Energy is being conserved for a potential future move.
SHIB currently trades within a compression zone. Short-term support exists at the 26 EMA level. Overhead resistance clusters near the 50-100 EMA zone. This tightening range increases the probability of a significant directional move once volume returns to the market. Compressed price action often precedes volatility expansion.
Source: https://coinpaper.com/13809/shiba-inu-price-action-signals-healthy-reset-rather-than-bearish-breakdown
