Shiba Inu (SHIB) price struggles as momentum fades and technical outlook turns cautious for May 24
Shiba Inu price action faces resistance near $0.00001590, with downside risks below $0.00001440
Shiba Inu (SHIB) is currently facing downside pressure following a failed breakout attempt above the $0.00001590 resistance zone. After several days of building bullish momentum, the price was rejected near the 0.236 Fibonacci level and has since dropped below key short-term support zones. The pullback has sparked a broader wave of profit-taking, with the price action now confirming a breakdown from the ascending trend structure formed since mid-May.
Highlights
- Shiba Inu (SHIB) faces strong resistance near $0.00001590 after a failed breakout.
- The price is testing key support around $0.00001440, with a break below $0.00001396 signaling further downside.
- Momentum indicators, including RSI and MACD, suggest weakening bullish pressure, pointing to the potential for more downside.
The rejection at $0.00001590 was significant, not just due to its historical role as a supply zone but also due to the confluence of descending trendline resistance and prior swing highs. After the rejection, SHIB swiftly fell through the $0.00001525–$0.00001500 zone and broke below the intraday ascending support.
This shift has realigned the short-term structure with a bearish bias, as lower highs and lower lows begin to form. While the price briefly found temporary absorption at the $0.00001440 level, its inability to regain the $0.00001500 region remains a concern for bullish traders.
Shiba Inu price dynamics (Source: TradingView)
Technical indicators show weakening bullish momentum
Momentum indicators are confirming the weakening trend. The Relative Strength Index (RSI) has dropped to around 30.6, nearing oversold conditions, following a bearish divergence that preceded the recent sell-off. Meanwhile, the MACD is in negative territory, showing a bearish crossover, signaling a loss of bullish momentum.
These conditions suggest that any short-term recovery may face significant resistance, and the price may continue to struggle unless accompanied by a surge in volume and a decisive reclaim of broken support levels.
Short-term outlook: Testing key support levels
For the short-term outlook, SHIB's price action will depend on its ability to hold the $0.00001440–$0.00001420 zone, which now acts as critical short-term support. A rebound from this zone could trigger a retest of the $0.00001500 area. However, a failure to hold above $0.00001400 could signal a shift toward deeper support levels around $0.00001380 and $0.00001300. A break below $0.00001396 on a daily closing basis would confirm a broader corrective phase, with potential downside risk toward $0.00001300 as the next support base.
As mentioned previously, Shiba Inu’s price has struggled to maintain bullish momentum after failing to reclaim the $0.00001590 resistance zone. The short-term technical structure remains bearish, with a pullback likely to test key support zones, particularly the $0.00001300 area.
