Shiba Inu Drops Below Key Support, 14% Decline Now in Focus

Shiba Inu has slipped beneath a critical technical level, signaling growing weakness in its short-term price structure. The token recently closed below its 20-day moving average, a zone that had previously acted as support and helped stabilize price action earlier in the month. This breakdown suggests that bullish momentum has faded and that sellers are gaining control.

With this support now lost, market attention shifts toward the next major downside area near the lower Bollinger Band. If the current trend continues, SHIB could drift toward this region, implying a potential decline of roughly 14% from recent levels. In highly volatile assets like Shiba Inu, such moves are not unusual once key technical thresholds fail.

Earlier in January, Shiba Inu attempted a modest recovery, briefly trading above its mid-range technical levels and hinting at a possible trend reversal. That move, however, lacked follow-through. Buying pressure remained limited, and the price began to stall near resistance rather than building upward momentum.

As the market consolidated, the 20-day moving average gradually lost its role as a support zone. Once price slipped beneath it, that same level began acting as resistance, making it more difficult for buyers to regain control. This shift often marks a transition from neutral or bullish conditions into a more defensive phase.

Volume patterns reinforce this picture. Trading activity has not shown the kind of surge typically associated with strong accumulation, suggesting that market participants are hesitant to commit fresh capital at current levels.

The weakening structure increases the probability of a broader pullback. In technical terms, the lower Bollinger Band now becomes the natural magnet for price, representing the lower boundary of SHIB’s recent trading range. A move toward this zone would not be extraordinary, but it would confirm that the market is in a corrective phase rather than preparing for expansion.

To reverse this trajectory, Shiba Inu would need to reclaim its short-term moving average and hold above it on a daily closing basis. Without that, each bounce is likely to be treated as a temporary relief move rather than the start of a sustained recovery.

For now, the chart reflects hesitation and declining confidence. Unless buyers step in with conviction, the path of least resistance remains tilted to the downside, keeping the risk of a deeper retracement firmly on the table.