Shiba Inu has experienced a dramatic reversal in direction, losing almost half of its gains in less than 48 hours following a strong breakout that drove the token to $0.000017 on May 12. With bulls finding it difficult to sustain momentum, SHIB appears to have struck a brick wall at the crucial resistance zone, previously mentioned as it is currently trading close to $0.0000153.
A classic rejection scenario is depicted by the price action. Strong volume saw SHIB spike above its 200 EMA, suggesting a possible trend reversal. But the rally failed to sustain itself above the $0.000017-$0.000018 range, where more than 476 trillion SHIB are in break-even or unrealized loss territory, resulting in significant selling pressure.
Half of the rally's gains were erased in record time due to a severe correction brought on by this resistance cluster. What is remarkable is the enormous increase in trading volume that coincided with the rally and the rejection. As early buyers or swing traders pull out at resistance, the volume spike not only indicates possible distribution but also validates high market participation.
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An additional indication of buyer exhaustion and aggressive selling is the candle's long upper wick on May 12. The key support zone at $0.0000144 and the 100 EMA are now just above SHIB's current technical position. The token could fall back toward the $0.0000135 support if this level does not hold. Indicating that the asset is no longer significantly overbought, the RSI has cooled off from extreme levels (previously above 70); however, the bullish momentum has obviously weakened.
So is something going on? Yes. SHIB's rally encountered a congested area of resistance with minimal support from wider market drivers. The token may continue to correct in the near future if there is no fresh catalyst or buying pressure. Now that $0.0000144 is SHIB's line in the sand, pay close attention to it.
