- Shiba Inu (SHIB) is currently in an almost critical condition. Breaking it can cause even bigger losses.
- The momentum is weak, and future increases are expected to be gradual.
- Investors are moving towards utility tokens and DeFi tokens in search of higher ROI.
Currently, Shiba Inu (SHIB) is hovering just above a key support zone around $0.0000077.
In particular, this area represents the bottom of the previous cycle and is being closely monitored for a potential rebound.
If the price fails to break above the support zone, a double-digit correction could continue.
Changes in market sentiment and investors
Investor sentiment towards SHIB is cautious, and broader market conditions for altcoins and meme coins are fragile.
Many traders are increasingly favoring projects with real-world utility, and this trend is driving some capital away from meme coins like SHIB.
This change suggests that SHIB may face challenges in regaining strong speculative demand.
Most analysts believe Shiba Inu’s next rally will be modest compared to past movements.
After a period of aggressive growth, meme coins now appear to be in a consolidation phase, and future price movements are likely to be gradual rather than explosive.
Investors looking for higher ROI are reportedly turning to DeFi tokens, meaning money is flowing into assets deemed to have more long-term potential, which could ultimately limit the pace and scale of SHIB’s short-term gains.
SHIB’s technical outlook and risks
Technically, Shiba Inu (SHIB) is still under pressure, with momentum weakening after an early January rally.
Memecoin rose nearly 25% in the first few weeks of the month, but gave back most of its gains.
The short-term chart shows a bearish pattern with lower highs and lower lows, resistance at moving averages such as the 50-period EMA and the 100-period EMA, limiting upward movement.
The Relative Strength Index (RSI) also remains in weak territory and shows little sign of a sustained reversal.
Current price action shows consolidation around the key support at $0.0000077, but no strong breakout signal has emerged.
It is essential to hold the support at $0.0000077 to prevent a sharp decline.
A break below support could lead to a deeper correction and a loss of investor confidence.
On-chain data and derivatives activity suggest that speculative demand is currently low.
This reduces the safety net against selling pressure and increases risk.
However, despite these challenges, stabilizing at support levels could allow SHIB to maintain its trading range.
A solid recovery will likely require broader market strength or positive developments within the SHIB ecosystem.
Analysts stress that while there is potential for a modest rally, the coin lacks the catalyst to create a parabolic surge.
Investors should monitor key support zones, market sentiment, and competition from utility-focused projects.
Shiba Inu’s short-term trajectory will largely depend on its ability to maintain critical levels and adapt to changes in investor preferences.
