Shiba Inu Attempts Recovery After RSI Reset Signals Seller Exhaustion

Shiba Inu (SHIB) posted a sharp technical rebound after plunging into deeply oversold levels on the Relative Strength Index (RSI). The move halted a persistent downtrend that pushed the meme token toward multimonth lows, raising concerns among traders watching momentum weaken across multiple timeframes.

The oversold reading signaled a potential capitulation phase, prompting buyers to step in as selling pressure began to cool. This shift suggested that bears were losing momentum, triggering a short-term recovery attempt.

Downtrend Still Intact as Major Moving Averages Hold Above Price

Despite the bounce, SHIB remains firmly below its 50-day, 100-day, and 200-day moving averages, a structure that keeps the broader trend in bearish territory. Market observers note that the token’s bounce is driven by technical triggers rather than an improvement in sentiment.

Notably, trading volume held steady throughout the downturn, indicating that the decline was more consistent with controlled profit-taking and gradual unwinding rather than panic-driven exits.

Analysts also highlighted that the rebound aligns with a slowdown in downside momentum. Traders are now watching closely for stronger trend-reversal signals before positioning for longer-term upside.

Key Recovery Zone Emerges as SHIB Tests Trend Boundaries

If SHIB extends its bounce, it may attempt a move toward the $0.0000095–$0.000010 region. This area aligns with the 20-day and 50-day moving averages and now represents a critical resistance zone. 

A rejection there would indicate that the rebound is temporary and remains within the confines of the broader downtrend.

Meanwhile, maintaining stability above $0.0000080 would suggest that selling pressure has eased significantly. A period of reduced volatility in that zone could signal early accumulation, a pattern that often precedes medium-term recoveries, though such setups tend to develop slowly.

Downside Risk Still Present Despite Strengthening Buy Volume

A breakdown remains possible if the current bounce loses momentum. A decisive close below recent lows could drag SHIB toward the $0.0000070 liquidity pocket, reopening the door to renewed bearish pressure. 

However, analysts view this scenario as less likely in the immediate term due to consistent buy volume accompanying the rebound.

Market Watches for Confirmation of a Sustained Recovery

SHIB’s technical bounce has revived interest across the market, with traders monitoring whether the momentum can evolve into a broader trend shift. 

The next few sessions will be critical as SHIB navigates key resistance and support zones that will determine the viability of a sustained recovery or a return to its downward trajectory.