Shiba Inu Faces Pressure as Technical Indicators Signal Bearish Trend – What’s Next for SHIB Price?

Shiba Inu (SHIB) bears remain firmly in control on Monday, as bearish technical signals flash, warning that further near-term downside is likely.

Since the end of February, the SHIB price has rejected retests of key moving averages on multiple occasions, suggesting that bearish sentiment remains strong.

On January 31, Shiba Inu rejected a retest of its 200-day moving average (DMA), sending a signal that medium-term market momentum had swung decisively bearish.

Recent rejections of the 21-day moving average (DMA) have strengthened the argument that the SHIB price is likely headed lower in the near term.

Shiba Inu, alongside the broader meme coin market, has slumped in the month since Trump’s meme coin launch.

Trump’s meme coin, which at one point saw its market cap shoot up to north of $70 billion, drained liquidity from the broader meme coin market.

After major meme coins saw significant upside in 2024, fears that 2025 would be a major year of dilution have been ramping up, weighing heavily on prices.

When you overlay @pumpdotfun launches on top of the Solana value chart…. $SOL stopped going up almost precisely when people started launching lots of memecoins. pic.twitter.com/c1plCsn8NX

— Luke Martin (@VentureCoinist) September 3, 2024

At the current price of $0.0000157, SHIB is down more than 50% from its previous yearly highs.
However, that is not bad compared to the pullback seen in some other meme coins.

Shiba Inu’s massive community and continued ecosystem development has seemingly taken the edge off of the selling pressure.

After all, Shiba Inu even announced a major partnership with Abu Dhabi, which underlines its leading position in the broader Web3 space.

Unprecedented Partnershib @MOEIUAE x @Shibtoken!
We’re honored to announce our new Partnership with the Ministry of Energy and Infrastructure of the World’s #1 Crypto location, the UAE!
Learn more https://t.co/TMFjLvlmHB pic.twitter.com/pkv6AGmUyI

— Shib | TreatYourself Season (@Shibtoken) February 4, 2025

What’s Next for the Shiba Inu Price?

The Shiba Inu price is undoubtedly in a downtrend right now, with any near-term rebounds likely to be sold off, and a retest of previous monthly lows in the $0.00001150 area seemingly likely in the near term.

Once the SHIB price hits this area, it will be a major decision point for the market. The $0.00001150 area has been a major resistance-turned-support zone going all the way back to mid-2023.

A break below here might trigger full capitulation for an already heavily beaten-down meme coin market.

But a drop to these levels would likely be an attractive buying opportunity.

As noted, Shiba Inu is a major leader in the meme coin and Web3 space. Its large community means it’s not going anywhere any time soon.

And 2025 is set to be a record year for global crypto adoption, led by rising demand for Bitcoin.

Certainly, the US may even establish a Strategic Bitcoin Reserve in the months ahead, which could lead to significant price appreciation.

That would undoubtedly bleed over to the broader market. And while a new meme season (like seen in late February/March 2024) is far from guaranteed, names like Shiba Inu would undoubtedly perform well.

The positive market backdrop thus makes SHIB a compelling meme coin to accumulate during market dips, even if the meme coin narrative has weakened considerably in 2025.

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