Saad Ullah
Shiba Inu (SHIB) just got crushed below its 50-day moving average, wiping out almost all of July's gains in what's shaping up to be the summer's most brutal meme coin collapse.
Shiba Inu pulled off one of the nastiest chart reversals we've seen all summer. What looked like a solid comeback in July turned into a classic bull trap that's left SHIB holders nursing some serious losses. Trading around $0.00001223 right now, the meme coin has smashed through key support levels and doesn't look like it's done falling yet.
The whole thing started when SHIB seemed like it might actually hold above the important moving averages and push back toward $0.00001400. Bulls got excited, momentum picked up, and then - boom - the rug got pulled. That's textbook bull trap behavior right there.
SHIB (Shiba Inu) Price Breakdown Spells Trouble
Breaking below that 50-day EMA isn't just another dip - it's a big deal technically. This kind of breakdown usually means we're in for a rough ride, and SHIB is now sitting dangerously close to another major support level. If that one goes too, we could see this thing tank all the way down to $0.00001100 or worse.
The volume tells the real story here. Instead of people buying the dip like they usually do, we're seeing heavy selling pressure. That's not a good sign - it means people are actually losing faith, not just taking quick profits.
What's Next for SHIB Price?
The technical indicators aren't helping either. The RSI is heading toward oversold territory, but it's not showing any signs of a bounce yet. That usually means more pain is coming before things get better.
Here's the thing about SHIB breakdowns - they tend to stick around. Once this coin starts falling, it often keeps going for weeks or even months. Unless the bulls can somehow push it back above that 50-day moving average with some serious volume, the bears are going to stay in control.
Bottom line? That summer rally everyone was excited about might have been nothing more than bait. What comes next could get pretty ugly, so anyone still holding might want to think about their risk tolerance. This technical rejection has all the hallmarks of a prolonged downtrend, and SHIB has a history of making these moves hurt.
Saad Ullah
