Shiba Inu (SHIB) is showing signs of technical weakness despite a neutral market positioning, with analysts expecting a short-term bounce to $0.000009 before deeper selling pressure takes hold. The meme token, which surged during the 2021 crypto rally, now lacks the institutional support that has propped up other major cryptocurrencies.
Weakening Momentum
Technical momentum for SHIB is weakening even as the token sits in neutral territory on key indicators. The Relative Strength Index (RSI) hovers around 50, suggesting neither overbought nor oversold conditions. But the lack of directional push signals that buying pressure is fading. Without a fresh catalyst, the token may struggle to hold recent gains.
Volume trends reinforce the picture. Daily trading activity has tapered off, and open interest in SHIB futures has declined. That combination often precedes a downward move, especially when momentum has already stalled.
Expected Bounce and Selling Pressure
Despite the weakening backdrop, a short-term bounce to $0.000009 is expected. Such a move could lure short-term traders looking for quick returns, but the consensus among market participants is that selling pressure will resume after that level is reached. The bounce may be sharp but brief — a classic dead-cat bounce pattern in technical analysis.
The projected selling pressure stems from a lack of large buyers. Retail-driven rallies tend to exhaust quickly, and without institutional accumulation, there is little to absorb sell orders once the initial pop fades.
Institutional Support Gap
Unlike Bitcoin or Ethereum, which have attracted institutional capital through ETFs, futures products, and corporate treasuries, SHIB remains almost entirely retail-driven. No major asset manager has added SHIB to its books, and the token is absent from most regulated crypto funds.
That gap matters. When institutions hold a token, they provide a floor during sell-offs through long-term accumulation. Without that, SHIB’s price is more vulnerable to sudden drops. The token’s social media hype cycle has shortened over time, and each rally draws less interest from new buyers.
The lack of institutional support also limits the token’s use cases. While the Shiba Inu ecosystem has attempted to build DeFi and NFT platforms, adoption has been slow. Most holders are speculating on price, not using the token for transactions.
For now, all eyes are on whether the bounce to $0.000009 materializes and how quickly sellers push back. If the level fails to hold, the next support could be significantly lower. Traders will be watching the price action in the coming sessions for clues on whether SHIB can stabilise or faces another leg down.
