Shiba Inu (SHIB) Zero Removal Canceled by Dead Cat Bounce: 2 Price Levels to Watch

• SHIB in clear downtrend
• SHIB’s zero removal chances

Shiba Inu is trading very similarly to an asset caught in a classic dead cat bounce. There was no significant volume expansion to support the short-lived increase from recent lows, and there was no structural shift on the chart. The market is already beginning to reject it; it was a reactionary bounce within an established downtrend. The evidence is clear-cut. 

SHIB in clear downtrend

The 50-day, 100-day and 200-day major moving averages are all sloping downward, creating a multilayer resistance stack above the price. SHIB has not been able to convincingly break above even the 20-day EMA, and every time it tries to move higher, selling pressure is applied right away. 

SHIB/USDT Chart by TradingView

When buyers become weary, liquidity pools empty and rallies turn into chances for exits rather than entries. In addition, the price structure shows no indication of a trend reversal, lower highs and lower lows. The recent bounce simply tapped the underside of descending resistance and rolled over again, failing to disrupt the pattern. A dead cat bounce is precisely that — a brief relief rally that crumbles under its own weight because there is not a legitimate bid below it.

SHIB’s zero removal chances

In this market structure, it is not possible for SHIB to remove a zero from its price in the near future. SHIB would require consistent upward momentum, a breakout above the 100-day and 200-day MAs and a noticeable change in both volume and sentiment in order to even start challenging those levels. That does not exist. Volume is still thin and distribution is leaning, but momentum indicators like RSI are stuck in neutral and unable to produce bullish divergence. 

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Most likely a retest of support close to recent lows or a prolonged grind at the bottom will occur next. Meme assets suffer disproportionately when liquidity declines, so SHIB’s decline will only quicken if Bitcoin starts to weaken again. For now, investors should be cautious about their expectations. 

SHIB is having difficulty staying afloat inside a declining channel rather than preparing for a zero-removal breakout. The path of least resistance remains sideways or downward rather than upward until trend volume and overall risk appetite shift.

Source: https://u.today/shiba-inu-shib-zero-removal-canceled-by-dead-cat-bounce-2-price-levels-to-watch