SHIB Drops 7%: Brief Rebound Ahead or Start of a Lasting Decline?

SHIB has dropped by 7%, falling beneath the crucial support at $0.00001079 and amplifying bearish outlooks in the market. After maintaining stability within a tightening range since mid-2023, the token is now trading below major long-term moving averages like the 100 and 200 EMA, indicating a worsening downward trend title5 [ 5 ]. Technical signals reinforce this negative momentum: the MACD remains in the red with a shrinking histogram, and the RSI is close to oversold, hinting at a possible short-term rebound but no clear sign of a reversal title2 [ 2 ]. Trading volume during the decline matches previous sell-offs, supporting the expectation of ongoing downward pressure title5 [ 5 ].

Fibonacci retracement analysis points to further vulnerabilities.

is currently positioned at the 0.382 retracement level of $0.00001299, and a drop below this could lead to additional losses. The 0.5 and 0.618 levels, at $0.00001666 and $0.00002033 respectively, have repeatedly failed to attract sustained buying interest title2 [ 2 ]. Should SHIB fall below $0.00001079, it may head toward $0.00001050—a level last reached in October 2023—and possibly test the psychological mark of $0.00001000 title5 [ 5 ]. Wave analysis also points to a bearish outlook, with SHIB potentially targeting $0.0000077 or even the 2023 low of $0.0000054 if the current A-B-C corrective phase fails to find support title4 [ 4 ].

This breakdown carries important consequences for market sentiment. SHIB’s price has often depended on speculative enthusiasm and community-driven stories, but a lack of quick recovery could shake the confidence of retail traders and long-term investors title5 [ 5 ]. On the hourly chart, SHIB briefly bounced from $0.00001260, forming what could be a double-bottom pattern, but the 20-hour SMA at $0.00001285 remains a key level for bullish reentry title3 [ 3 ]. If SHIB can close above this point, a short-term rally toward $0.00001300 may follow, though the overall daily trend is still negative, with the token unable to reclaim the 50-day SMA at $0.00001391 title3 [ 3 ].

Risk and reward analysis highlights SHIB’s fragile position. From its current price of $0.00001281, there is an 8.58% potential gain to $0.00001391, but a 10.23% risk of decline to $0.00001150 title3 [ 3 ]. This uneven risk profile underscores the need for a clear breakout or breakdown. Experts point out that while the RSI’s proximity to oversold levels suggests a possible bounce, continued trading below $0.00001260 could speed up the decline, with $0.00001150 as the next significant support title5 [ 5 ].

Wider market dynamics add further complexity. SHIB’s price action is closely linked to the volatility of the broader altcoin market, and its limited utility beyond governance makes it susceptible to shifts in overall sentiment. While a move back to $0.00001330 could revive bullish hopes, the lack of fundamental drivers—such as new partnerships or product launches—means traders are mainly focused on technical signals for now title3 [ 3 ].