Shiba Inu (SHIB) has recently experienced a significant setback in its short-term price trajectory, with technical indicators signaling a potential shift from a bullish outlook to a period of correction. After showing promising signs of a breakout earlier in January, the popular meme coin has abruptly reversed course, challenging the optimistic projections many investors held.
Erasing the Bullish Roadmap
The bullish momentum for Shiba Inu took a decisive turn as it lost critical support, closing below its 20-day moving average. This technical breach is particularly significant as this threshold had been a cornerstone of its potential upward trajectory. Furthermore, the Bollinger Band midline, which had served as a key support zone since SHIB's $0.00000965 peak on January 4th—following a "golden cross"—has now also been surrendered. This breakdown suggests a strong pivot from a scenario of potential continuation to one where a mechanical reversion or correction appears increasingly likely.
The Immediate Challenge for SHIB
Currently trading around $0.00000839, SHIB now faces an immediate downside target at the lower Bollinger Band, projected at $0.00000718. This represents a substantial 14.36% gap that typically closes unless a swift recovery materializes, which has yet to show signs of emerging. The 20-day moving average, once a supportive floor, has now morphed into a resistance ceiling. While the "bull case" for SHIB isn't entirely dead, it has undoubtedly been pushed back. The focus has shifted from pursuing upside extensions to a more defensive stance, as the coin must now battle for survival within its existing volatility range to avoid further declines.
