SHIB Struggles as Bears Take Control
Shiba Inu (SHIB) is facing serious trouble. Bearish signals dominate the charts, hinting at further downside. Since late February, SHIB has struggled to break key resistance levels.
The 200-day moving average (200DMA) rejection on January 31 was a major red flag. This confirmed a shift in market momentum. Recent failures to break the 21DMA only add to bearish concerns.
Meme Coin Market Takes a Hit
SHIB is not alone in its struggle. The broader meme coin market has been under pressure. The launch of Trump’s meme coin sucked liquidity from other assets. At one point, its market cap soared past $70 billion, diverting attention from established meme coins.
Additionally, fears of market dilution in 2025 are keeping investors cautious. Many traders worry that meme coins could see further losses after their massive gains in 2024.
At $0.0000157, SHIB is down over 50% from yearly highs. However, this drop is relatively mild compared to other meme coins. The strong Shiba Inu community and ongoing ecosystem development help limit selling pressure.
Abu Dhabi Partnership and Ecosystem Strength
Despite the bearish momentum, Shiba Inu continues to build. A recent partnership with Abu Dhabi underscores its leadership in the web3 space. Long-term investors see this as a bullish sign.
SHIB’s strong community ensures its survival. It remains one of the most recognized meme coins, with a loyal following and an expanding ecosystem.
Where is SHIB Headed Next?
The downtrend remains intact. Any short-term bounce could face selling pressure. A retest of monthly lows around $0.00001150 is likely.
This price zone is critical. It has acted as both resistance and support since mid-2023. A break below could trigger a larger sell-off. However, if buyers step in, SHIB could stabilize and set the stage for a rebound.
A Buying Opportunity?
A drop to these levels might attract long-term investors. The broader crypto market is expected to grow in 2025. Bitcoin adoption is rising, and the U.S. may even establish a Strategic Bitcoin Reserve.
If the market turns bullish, meme coins could benefit. While another meme coin rally like early 2024 is uncertain, SHIB is still positioned to perform well.
For now, caution is key. But for those willing to accumulate on dips, SHIB remains a compelling long-term play.
