Memecoin on Pause: Why Shiba Inu Price Drops Over 12%?

Shiba Inu (SHIB), one of the leading memecoins in the cryptocurrency space, has experienced a rough week, with its price currently at $0.00001082. The token, in the previous 24 hours, has dropped more than 12%, posting a decline of around 10.87% in the past week. Contrary to past optimistic hopes, the Shiba Inu price has not yet hit new heights. The following is an analysis of the current situation and what traders should anticipate in the future.

Failed Bounce at Key Support Level

Last week’s analysis pointed towards the $ 0.000012 support zone as a possible bounce point. Traders were hoping for a push towards $0.000014 or even higher. Unfortunately, that bounce didn’t happen. Instead, Shiba Inu struggled around the price of $ 0.0000125 level, which has now turned into a short-term resistance. The bulls tried but just couldn’t break through, showing that confidence in the market is still low.

Low Momentum and Weak Bullish Signals

On the 4-hour chart, the RSI (Relative Strength Index) tried to cross the neutral 50 line, a level that usually hints at a shift in momentum- but failed to do so. This was another sign that the bullish momentum isn’t strong enough. The Bulls made a last-ditch effort to turn things around a few hours ago, but they couldn’t hold up. Resistance remains strong around $0.0000124 and $0.0000125.

Sideways OBV and Low Trading Volume

Looking at the OBV (On-Balance Volume), there hasn’t been much action. The indicator has been moving sideways, which means neither buyers nor sellers are showing dominance. Along with that, the trading volume has also been quite low. This usually signals a lack of interest or caution among traders. Because of this, SHIB has been stuck in a tight range from $0.000012 to $0.000013 over the last week.

Range Formation and Possibility of Breakdown

Given the weak volume and sideways movement, the range pattern might continue in the short term. But the decreased trading volume will lead to a drop below the current range. The points of high liquidity to watch out for are $0.0000119 and $0.0000118. These points will grab the attention of traders if the price keeps dropping. Alternatively, attempts at recovery will be thwarted at the $0.0000125 point.

Is It Time to Accumulate for the Long-Term?

Analysts believe that Q2 2025 could be a good time to start accumulating altcoins. SHIB, being a well-known memecoin, may be worth watching for long-term investors. Even though a bounce doesn’t look likely right now, the current range low could present an opportunity, but only if supported by higher volume. Swing traders looking to go long must manage their risks carefully and watch for any sudden changes in trading volume before making a move.

Final Thoughts

Shiba Inu’s recent price action shows caution and uncertainty in the market. While a big breakout isn’t on the cards right now, a dip followed by a bounce back to range highs might still happen. Traders and investors should stay alert, focus on key levels, and keep an eye on volume changes to make smart moves in the days ahead.