Shiba Inu (SHIB) recently showed signs of a potential breakout, briefly reigniting optimism among traders as broader crypto market momentum picked up. The meme coin’s short-lived surge sparked speculation that SHIB might finally eliminate a zero from its price.
However, that optimism quickly faded. Selling pressure intensified almost immediately, cutting the rally short before it could develop into a sustained move. Despite the initial spike, SHIB remains locked in a broader downtrend and continues to trade below its long-term moving averages, reinforcing the view that bearish market structure still dominates.
Market Pressure Prevents Sustainable Growth
Although SHIB managed a modest recovery from recent lows, the rebound has so far resembled a bounce rather than a genuine breakout. Each attempt to push higher has been met with renewed selling pressure, preventing the price from establishing upward momentum.
This pattern has become a recurring feature of SHIB’s recent price action. Liquidity consistently enters the market on the sell side whenever the token begins to rise. Swing traders, short-term trading bots, and even long-term holders appear to be contributing to this supply, using price strength as an opportunity to exit positions.
As a result, SHIB has struggled to escape its range, making it difficult to envision a move into a higher price zone in the near term. The market structure remains skewed toward sellers, with no clear signal that buying pressure is strong enough to overpower the constant overhead supply.
Exchange Supply Weighs on Any Rally Attempt
Another major headwind for SHIB is the large volume of tokens currently sitting on exchanges. This readily available supply acts as a persistent drag on price, as holders appear willing to sell into even modest rallies.
Whenever SHIB begins to climb, a wave of sell orders emerges, absorbing demand and capping further upside. This dynamic has turned exchange balances into a de facto resistance zone, reinforcing the broader bearish bias in the market.
With such a significant amount of SHIB still positioned for potential liquidation, any near-term rally faces steep odds unless that supply overhang begins to shrink meaningfully.
Long-Term Prospects for SHIB’s Price Action
While SHIB’s short-term outlook remains challenging, longer-term prospects are not entirely off the table. A meaningful reduction in exchange balances, combined with a decisive break above key moving averages, could eventually shift market structure in favor of bulls.
If those conditions are met, the long-discussed narrative of zero removal could regain credibility. However, such a scenario would require a clear change in sentiment, with sellers stepping back as price advances instead of using each rally as an exit opportunity.
Until that shift occurs, SHIB is likely to remain trapped in its downtrend, with continued volatility and false starts frustrating traders. For now, the meme coin’s path forward remains uncertain, with sellers firmly in control and any sustainable recovery still out of reach.