Shiba Inu (SHIB) has been on a downward trend for several weeks, losing over 34% of its value since hitting a high of $0.00001894 in February 2025. As of mid-March, SHIB is trading around $0.00001251, struggling to maintain support levels amid increasing selling pressure.
Despite a brief 26% rebound last week, where SHIB touched $0.0000138 after dipping to $0.00001082, the price quickly resumed its downward trajectory. Analysts now warn that technical indicators point to further downside movement.
Death Cross Pattern Raises Bearish Concerns
A major concern for traders is the emergence of a Death Cross pattern on the SHIB/USD chart—a bearish signal that occurs when the 50-day moving average (MA) drops below the 200-day MA. This pattern suggests a potential extended decline as SHIB remains below both key moving averages.
Adding to the bearish outlook, the lower Bollinger Band at $0.00001123 could act as a short-term price target, potentially leading to another downward move if selling pressure persists.
Whale Activity and Market Sentiment
Shiba Inu’s price movements have historically been influenced by large whale investors. On-chain data from Glassnode shows that before the 2021 bull run, whales held 20% of the total SHIB supply. These large holders continue to impact the market, with their buying and selling activities causing noticeable price fluctuations.
Currently, analysts are watching whale activity closely—if these large holders sell off more SHIB, it could accelerate the downtrend. However, strong support at the $0.00001 level has repeatedly prevented a deeper drop, suggesting buyer demand at this price point.
Can SHIB Reverse the Downtrend?
For Shiba Inu to regain momentum, it must break above $0.000013, a key resistance level. Failing to do so could keep SHIB in a confined range, possibly retesting lower supports.
The coming days will be critical as investors monitor whether whales influence a market reversal or if SHIB succumbs to further bearish pressure driven by technical indicators.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making any investment decisions.
Note: This article has been refined and enhanced by ChatGPT.
