Shiba Inu, now attempting a rebound again?..."Possible if it holds the support line"

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) is facing bearish pressure below key moving averages, with a decline in the Relative Strength Index (RSI) and defense of support lines putting its short-term rebound potential to the test.

According to U.Today, a cryptocurrency specialized media outlet, on June 1 (local time), Shiba Inu remains in a technically challenging zone. The price is trading below the 50-day, 100-day, and 200-day moving averages, and selling pressure dominates the overall market structure.

Recently, Shiba Inu failed to overcome resistance near the 100-day moving average and subsequently faced renewed selling pressure. This rejection near the resistance line reconfirmed the burden of selling volume at higher levels and pushed the price back towards the support line. This is why it is difficult to conclude that the long-term downward trend has ended.

However, it is also difficult to completely rule out short-term rebound expectations. The Relative Strength Index (RSI) has fallen to approximately 37, approaching oversold territory, and similar conditions in the past have led to relief rallies when combined with strong support lines. The relatively stable trading volume during the decline can be interpreted as a sign that panic selling has not worsened.

Currently, the most important point to watch is whether the ascending support line near the price holds. If Shiba Inu maintains this support line, it could attempt to re-break the 50-day and 100-day moving averages. While such a recovery does not signify the end of the long-term downtrend, it could demonstrate that buying pressure is actively defending amidst overall market weakness.

Shiba Inu also has the factors of decreasing exchange holdings and expanding discussions about supply reduction. U.Today reported that if market sentiment improves, these factors combined with technical support lines could underpin another recovery attempt. However, the current trend remains bearish, and whether the support line holds and oversold signals translate into actual rebound strength will be the key variable determining the short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*