Shiba Inu Shows Signs of a Reset Rather Than a Breakdown

Shiba Inu (SHIB) is displaying technical behavior that suggests a market reset rather than a continuation of its recent downtrend, according to a fresh analysis of its price structure. After facing rejection near the $0.000009 level, the meme coin has managed to stabilize above a key technical threshold, easing concerns of a deeper sell-off.

Price Rejection Met With Quick Stabilization

SHIB’s rejection near $0.000009 was widely anticipated, as the level aligns with resistance from multiple higher moving averages. Instead of triggering a sharp decline, the price quickly found support, marking a notable divergence from typical bearish breakdown patterns.

This stabilization indicates that selling pressure has cooled rather than intensified, reinforcing the view that the market is recalibrating rather than failing.

26 EMA Emerges as a Crucial Pivot Level

A key development in the current setup is SHIB’s ability to hold above the 26 Exponential Moving Average (EMA). This level is acting as a dynamic pivot point and is often used by traders to gauge short-term trend continuation.

Historically, SHIB holding above the 26 EMA following a sell-off has preceded multi-week recovery phases, particularly when broader market sentiment remains neutral to constructive.

Declining Volume Signals Seller Fatigue

Another supportive signal is the behavior of trading volume. Rather than spiking during the pullback, volume has declined, suggesting that sellers are losing momentum.

This pattern typically reflects a cooling-off period in which the market digests prior moves, instead of a renewed wave of distribution.

Momentum Indicators Support a Potential Recovery

Momentum indicators further strengthen the reset narrative. The Relative Strength Index (RSI) has retreated from recent highs but remains well above oversold territory, pointing to a moderation in momentum rather than a breakdown.

This RSI behavior is often seen during consolidation phases that precede renewed upside attempts.

Consolidation Defines the Near-Term Outlook

At present, SHIB is consolidating between short-term support at the 26 EMA and overhead resistance created by the 50–100 EMA cluster. As long as price action remains above the 26 EMA, the probability of an upside resolution increases once buying volume returns.

While the reset phase may not immediately result in sharp gains, it establishes a more constructive base for a potential recovery.

Recovery Path Remains Intact for Now

Despite the rejection at $0.000009, SHIB’s market structure and volume profile currently favor stabilization over a major sell-off. Analysts note that maintaining support above the 26 EMA and avoiding a high-volume breakdown below this level will be critical in preserving the recovery outlook.

For now, SHIB appears to be resetting its momentum, keeping the door open for renewed upside if conditions continue to improve.