Just days after rallying to a local high of $0.000017, Shiba Inu (SHIB) has retraced sharply, losing nearly 50% of its recent gains within a 48-hour window. This sudden reversal highlights the market’s growing uncertainty and renewed selling pressure near a significant resistance level.
SHIB Rally Meets Resistance at $0.000017
SHIB experienced a strong breakout on May 12, briefly pushing past its 200-day Exponential Moving Average (EMA) with heavy volume. This breakout led many to believe that a trend reversal was in play. However, the price failed to maintain momentum above the $0.000017–$0.000018 resistance zone, an area with substantial overhead supply.
According to on-chain data, over 476 trillion SHIB tokens sit in this price range under break-even or unrealised losses. As a result, traders rushed to offload holdings once the price hit this zone, triggering a steep correction and a classic rejection pattern on the charts.
Volume Surge Signals Distribution
The recent price action was accompanied by a significant increase in trading volume, confirming strong market participation. However, rather than supporting continued upside, this surge appears to reflect a distribution phase, where early buyers and swing traders began to exit at resistance.
The May 12 candle, with its long upper wick, illustrates the aggressive selling that occurred near the rally’s peak. This wick, combined with the volume spike, suggests that buyer exhaustion has set in.
Currently, SHIB trades near $0.0000153, with the 100 EMA and the $0.0000144 support zone positioned just below. If this area fails to hold, analysts warn that SHIB could decline further toward $0.0000135, the next key support level.
Adding to the bearish shift, the Relative Strength Index (RSI) has dropped from overbought territory (previously above 70), reflecting weakening bullish momentum.
Related article: Shiba Inu Crashes Below $0.000016: Is a Rebound Brewing?
Why SHIB Is Struggling: No Catalysts, Heavy Resistance
So, is something wrong with SHIB? Not inherently. The token ran into a thick wall of resistance without fresh catalysts or wider market support to propel it further. Without renewed buying pressure or a major fundamental development, SHIB could remain under pressure in the short term.
For now, $0.0000144 serves as the make-or-break level. A bounce from here could rekindle bullish sentiment, but a breakdown may confirm that the recent rally was merely a short-term relief move.
SHIB’s impressive rally has paused, and the current correction focuses on key support levels. Traders should monitor price action closely around $0.0000144, as this zone could determine whether SHIB stabilises or continues its downward slide. In the absence of strong buying interest or a market-wide uptrend, caution remains prudent.
