Shiba Inu Shows Early Signs of Relief as Downtrend Persists

Shiba Inu (SHIB) has remained locked in a clear downtrend over recent weeks, trading consistently below major moving averages. While the broader trend is still tilted toward the bears, a mild recovery has begun forming since late November, hinting at potential short-term upside.

The emergence of higher lows could signal a shift in sentiment, but SHIB continues to face strong resistance from the 50 EMA, 100 EMA, and 200 EMA — all positioned above the price and trending downward.

Market Conditions Point to Seller Fatigue, Not Panic

Recent market behavior indicates that SHIB may be moving out of its aggressive sell-off phase and into a more controlled consolidation zone. The price has compressed into a tight range, forming a shallow upward structure that reflects easing selling pressure.

Trading volume has also decreased significantly compared to the earlier breakdown, suggesting that panic-driven exits have slowed. Analysts note that this pattern often precedes market bottoming.

The Relative Strength Index (RSI) remains neutral, avoiding oversold territory. This reinforces the idea that SHIB could be preparing for a relief rally, particularly if overall crypto market sentiment stabilizes. While a major breakout is unlikely in the immediate term, a move toward the 50 EMA remains a key short-term objective for the token.

Crucial Phase Ahead as SHIB Tests Its Consolidation Zone

SHIB now sits at a critical juncture. The coming days are expected to determine whether the token can maintain its tightening consolidation and break higher, or if it will slip back into a deeper decline.

Investors are watching closely for confirmation of direction, as failure to maintain the consolidation base could invalidate the recent recovery momentum.

A successful push above resistance levels — especially the 50 EMA — may trigger a larger corrective bounce, offering hope for near-term gains. On the other hand, a breakdown from the current structure could send SHIB lower and signal renewed bearish pressure.

Outlook

Shiba Inu remains in a fragile position, balancing between consolidation and potential continuation of its downtrend. The market is waiting for clearer signals before committing to a direction.

For now, SHIB is in survival mode, working to establish a stronger foundation that could support a more meaningful recovery in the weeks ahead.