Shiba Inu's Two-Month Ascending Channel 'Collapses'...Momentum Reset is Coming

▲ Shiba Inu (SHIB)/ChatGPT Generated Image

Amidst the overall volatility in the virtual asset market, a specific memecoin that had maintained its support line for several weeks has broken away from its major technical structure, exposing it to downward risk.

According to U.Today, a cryptocurrency specialized media outlet, on May 25 (local time), Shiba Inu (SHIB) has lost the key support structure that had sustained its price for nearly two months and is nearing a complete momentum reset phase. Recently, on the daily chart, it broke below the lower line of the ascending channel, indicating that short-term control has completely shifted to sellers. Given the chart structure, it is highly likely that an additional volatility liquidation process will precede any significant recovery attempts. Shiba Inu had maintained a gradual recovery for several weeks, raising its lows within a narrow ascending channel since its March low, but buying pressure repeatedly faltered near the 50-day moving average, eventually leading to the collapse of the structure. As soon as the congested short-term moving average zone and the trendline support broke, the downtrend was confirmed.

This breach of the support line represents significant technical damage, as the foundation of the recovery structure, which was gradually raising its lows, has been broken. Currently, Shiba Inu is trading below its previous support channel, with momentum indicators showing a downward curve. The Relative Strength Index has fallen to the lower end of the neutral zone without showing any significant bullish divergence. This indicates that the current market is utilizing price rebound opportunities not as healthy entry points for buyers but as opportunities for existing holders to secure exit liquidity.

The next key area traders are watching is between $0.00000540 and $0.00000550, the local low recently recorded. If Shiba Inu definitively loses this zone as well, a deep correction could occur, reaching previous levels where accumulation took place in March. However, this does not imply an immediate crash. It suggests that Shiba Inu, having failed to maintain breakthrough momentum, has entered a period of significant price cooling. Such a reset phase is common for meme assets that have undergone long-term sideways compression. Before trend continuation becomes possible again, the market will likely explore a cleaner bottom and shake out short-term speculative holdings.

Currently, Shiba Inu lacks a clear catalyst capable of rapidly reversing investor sentiment. The 200-day moving average, which still shows a downward curve reflecting a long-term bearish macro trend, is located significantly below the current price. Even recent short-term recovery attempts have failed to completely turn the long-term chart structure in a bullish direction. As momentum indicators continue to decline, the ability to withstand downward pressure and defend support lines to establish a bottom will be crucial for the medium to long-term trend going forward.

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