Shiba Inu (SHIB) appears to be facing several key bearish factors that could push its price toward new annual lows. The token that captured headlines in 2021 has come under sustained pressure this year. How might you prepare for a possible decline? Details follow, but first a few highlights:
-
SHIB has remained below both the 55-day and 200-day simple moving averages in recent weeks.
-
The token is particularly vulnerable to geopolitical risks in Europe.
-
At the time of writing, SHIB traded at $0.00002173, down about 3% for the day.
Data source: TradingView
Shiba Inu (SHIB) – How to anticipate this decline
Bearish sentiment around Shiba Inu is not surprising. In general market downturns, meme coins like SHIB typically suffer the largest losses, since many investors shy away from speculative assets when overall market risk is elevated.
The fact that SHIB sits below both the 55-day and 200-day SMAs signals a bearish alignment. One realistic path would see the token move toward a primary support zone around $0.00001704 before any meaningful recovery. That would represent a roughly 25% drop from current levels and could place SHIB near its lowest points seen in 2022.
Heightened geopolitical tensions in Europe would likely amplify selling pressure. Traders looking to manage risk can consider short-term strategies such as short positions or other downside hedges while the market is weak, and then evaluate longer-term entry opportunities if SHIB reaches the $0.00001704 support level.
Is Shiba Inu (SHIB) losing momentum?
After dominating crypto conversations in 2021, concerns that Shiba Inu has lost momentum are understandable. Meme tokens tend to fade quickly once the speculative fervor wanes. That said, SHIB remains a large and widely recognized token, so disappearance in the near term is unlikely.
Following its record highs in 2021, SHIB may struggle to regain that same level of attention and price momentum in 2022 and beyond. Nevertheless, it continues to be one of the more prominent meme coins and remains on the radar of many investors and traders considering speculative allocations.