Shiba Inu shows mixed signals: rebound opportunity or continuation of the 51% decline?

The red candle marks the beginning of a critical bearish structure in SHIB

The technical analysis of Shiba Inu shows a confirmed bearish flag formation, with a measured projection pointing toward an approximate depreciation of 51 percent from current levels. This pattern began when a significant red candle drew the flagpole, followed by compressed sideways movements between two descending trend lines that form the flag’s body.

The pattern was confirmed when the price broke below the lower boundary of the channel, definitively closing below this critical line. This behavior represents the technical signal validating the continuation of the downtrend typically following this type of formation. The breakout zone was near 0.00000790, meaning that if the full measured move occurs, SHIB could head toward 0.00000385 to 0.00000390.

The technical context reinforces this bearish outlook. The RSI is near 31, indicating a considerably weak momentum aligned with the pattern’s structure. Simultaneously, the 50-day EMA maintains a downward slope above the price, amplifying the persistent bearish pressure. Before reaching the full target, the price could find support at intermediate support layers located approximately at 0.00000567 and 0.00000366, although the overall trajectory remains inclined toward the area below 0.00000400.

The MACD confirms weakening momentum with clearly bearish signals

Shiba Inu’s MACD analysis shows a fully bearish alignment. Both the MACD line and the signal line operate deep below the zero axis, with histogram bars extending in red tones, indicating a sustained strengthening of the selling momentum after the confirmed breakdown.

The widening gap between both lines reveals that selling pressure continues to dominate. Specifically, the blue MACD line is considerably below the orange signal line, demonstrating that buyers have yet to make concrete attempts to reverse the bearish dynamic. This scenario typically emerges during extended downtrends when the price fails to recover above significant resistance zones.

Most notably, the MACD line maintains a downward slope with no signs of an upcoming bullish crossover. The shift from green to deeper red bars during November illustrates the speed at which momentum reversed downward. Along with the confirmation of the bearish flag, these MACD readings support scenarios of further downside rather than recovery in the short term.

An intraday wedge opens a narrow window for a possible technical rebound

Despite the dominant bearish outlook, the short-term analysis presents a different scenario. Shiba Inu is stabilizing within a descending wedge structure that could allow for a tactical rebound if key support holds.

The price is currently compressing within a zone bounded by progressively lower highs and lows, with the critical support lower boundary located between 0.00000773 and 0.00000749. If SHIB manages to sustain this level, a wedge breakout could generate a sequence of higher lows and controlled retracements, typical behavior when momentum temporarily shifts direction.

The recovery potential faces technical obstacles. The first resistance level is approximately at 0.00000844, where historical trading activity created a reaction zone. Beyond that, the long descending trendline extending from the high of 0.00001070 intersects the region of 0.00000971, where a significant resistance cluster exists.

For a genuine reversal to be confirmed, SHIB would need to break out of the wedge, recover the mid-zone near 0.00000892, and then challenge the upper boundary of the structure. Until then, the intraday setup remains a tactical observation zone rather than a confirmed trend reversal. This rebound window mainly presents a short-term opportunity within a clearly bearish broader trend.

Conclusion: SHIB charts show a conflict between medium-term bearish signals projecting sharp declines and very short-term tactical rebound opportunities. Traders should maintain strict risk management on any positioning attempts, considering that the overall trend remains oriented toward significant downward pressure.