Shiba Inu Drops 21% in March, Bearish Trend Persists

Shiba Inu's price action over the past week has exhibited a strong bearish trend. The cryptocurrency fell below a critical long-term support level, and despite attempts to recover, the overall market sentiment remains bearish. This downward movement began in December, coinciding with Bitcoin's range formation, and has been exacerbated by various events that have eroded bullish conviction in memecoins.

The weekly chart for Shiba Inu shows a bearish structure, with the price breaking below the $0.0000164 level, which was the lower high from November. At the time of reporting, the price was hovering just above the $0.00001288 support level, having closed the first weekly session in March below this level. This reinforces the bearish outlook, as the rallies in early 2024 and November 2024 failed to challenge the highs from late 2022, despite Bitcoin experiencing significant capital inflow over the past year.

While a bounce from the outlined weekly support is expected, it is unlikely to be immediate. The market may experience a period of consolidation similar to the summer of 2024 before the next significant move. The 6-hour chart indicates that SHIB is trading near a local resistance at $0.0000138, with the On-Balance Volume (OBV) failing to set a higher high compared to earlier in the month. Key short-term resistance zones have been identified at $0.0000135 and $0.0000142, suggesting that SHIB is unlikely to rise more than 6% from its current price.

The Relative Strength Index (RSI) reflects bullish momentum following last week’s gains, but the overall swing structure on the 6-hour chart remains bearish. A breakout above $0.0000127 and its retest as support fueled recent gains, and a move above $0.0000152 could drive the next leg higher. However, the weekly chart does not indicate that such a breakout is imminent. The bearish bias on the higher timeframe suggests that SHIB bulls may face significant challenges in defending the $0.00001288 level.