Shiba Inu Faces Critical Test at 26-Day EMA as Bears Maintain Control

Shiba Inu is once again testing a familiar ceiling. The 26-day exponential moving average (EMA) remains dynamic resistance, blocking what has been a fragile recovery attempt. The broader trend remains bearish, and the token's inability to reclaim this level with conviction is raising fresh concerns among market participants.

$SHIB is currently trading just below the 26 EMA. The structure on the chart tells a straightforward story: lower highs, lower lows, and rallies that fade before gaining traction. Each time the price approaches this moving average, sellers step in. Rallies are being used as exit points, not entry signals. That behavioral pattern is a hallmark of a market that has not yet found a floor.

Volume data adds further context. Recent activity recorded approximately 374 billion $SHIB changing hands. While the figure represents a visible attempt to push the price higher, it falls short of what has historically accompanied meaningful breakouts for the asset. The move reads more like a probe than a commitment.

Technical Structure Remains Fragile

The internal structure of $SHIB's chart offers little optimism for bulls in the short term. The shorter-term EMAs remain positioned beneath longer-term trend lines. This alignment is textbook bearish. It signals that momentum has not shifted and that the path of least resistance remains to the downside.

The Relative Strength Index (RSI) sits in neutral territory. It is neither flashing oversold conditions that might attract bargain hunters nor showing the kind of strength associated with a genuine trend reversal. A neutral RSI in the context of a downtrend often means one thing: the market is waiting. It has not made up its mind, and until it does, indecision tends to favor the existing trend.

The ascending structure that emerged from recent local lows looked promising at first glance. On closer inspection, it lacks the volume support necessary to validate a recovery. Price can move higher on thin volume, but those moves rarely hold. What the chart currently reflects is a market attempting recovery without the participation required to sustain it.

What a Breakout or Breakdown Would Mean

Two scenarios are in play. The first involves a clean break above the 26 EMA on rising volume. Should buyers manage to flip this level into support, it would shift short-term sentiment meaningfully. A confirmed reclaim could trigger a short squeeze, pushing the price toward the next cluster of EMAs above. That outcome would represent a structural shift, not just a bounce.

The second scenario is more likely given current conditions. A rejection at the 26 EMA sends $SHIB back toward recent support zones. Weak volume on the current push leaves the token vulnerable. If broader crypto market sentiment turns cautious, that vulnerability becomes a liability. Price could retrace quickly and test demand at lower levels.

At the time of writing, Shiba Inu is trading at around $0.00000599, down 6.33% in the last 24 hours.