Shiba Inu Price Prediction: SHIB Declines Within the Channel, Each Bounce Met with Selling

Source: CryptoNewsNet Original Title: Shiba Inu Price Prediction: SHIB Slides Inside Channel As Every Bounce Gets Sold Original Link:

Downtrend Channel Defines the Trend

Shiba Inu is trading around $0.00000823 today, continuing to decline within a clearly defined downtrend channel. This movement remains seller-controlled, with the price struggling to sustain recent support levels, as spot outflows and weak momentum continue to pressure market sentiment.

On the daily chart, SHIB has been locked inside a descending slope channel since early October. Each rebound attempt over the past two months has failed below the upper boundary, confirming persistent selling pressure.

The price is trading below the 20, 50, 100, and 200-day EMAs. This stacked EMA structure reinforces a bearish bias, limiting the potential for sustained upward movement. The 200-day EMA near $0.0000114 remains well above the current price, emphasizing how far the price needs to move to signal a broader trend reversal.

The lower boundary of the downtrend channel is currently aligned around $0.0000078 to $0.0000076. This zone represents the next key support level if selling pressure resumes. Losing this area would expose the psychological level of $0.0000070, where buyers might attempt a defensive reaction.

Short-term Charts Show Fading Recovery Attempts

On the 30-minute chart, SHIB attempted a slight rebound within a short-term ascending channel, but this structure has already begun to fail. The price is now sliding back toward the lower edge of the intraday trading range.

The RSI on lower timeframes is in the 30s, reflecting weak demand rather than capitulation. Momentum has not reset higher, with each rebound quickly attracting sellers. This behavior indicates buyers are engaging in defensive trading rather than building positions.

The MACD remains flat to negative, with no meaningful bullish crossover. The lack of momentum confirmation suggests recent stability is a pause rather than a reversal.

Spot flow data further adds to the bearish picture. Recent trading shows continued net outflows, with the latest daily reading approaching negative $600,000. This pattern indicates SHIB continues to flow out to exchanges rather than long-term storage.

Burning Surge Fails to Change Price

Shiba Inu’s burn rate surged over 1,500% in the past day, removing more than 1.1 million tokens from circulation. Compared to recent activity, the increase is notable, but the absolute number remains small relative to the total supply.

The lack of immediate price reaction suggests traders are discounting short-term burn data, favoring broader market conditions. With risk appetite across the crypto market still weak, symbolic supply reductions have not translated into demand.

Burn activity may support a long-term narrative, but current price action indicates it is not a recent catalyst.

Market Focus on Upcoming Compliance Platform Futures Launch

Attention now shifts to upcoming developments. A compliant platform plans to launch US perpetual futures for a selected set of altcoins, including SHIB, on December 15. The exchange also announced a system upgrade on December 17, which the community is closely monitoring.

These events could increase activity and volatility but do not automatically reverse the trend direction. In the current environment, catalysts tend to amplify existing momentum rather than change it.

Outlook: Will Shiba Inu Rise?

While SHIB is trading within the downtrend channel, the structure remains bearish.

Bullish Scenario: SHIB recovers above $0.0000086 and closes above the midpoint of the channel, with improved volume. This would open the door to testing $0.0000095 and signal a short-term momentum shift.

Bearish Scenario: A daily close below $0.0000078 confirms continued decline and exposes $0.0000070 as the next demand zone.

Holding above $0.0000080 maintains the consolidation. Losing it would extend the downtrend into the end of the year.