Alex Dudov
Shiba Inu is still trading at a fraction of its former peak, a reminder of just how brutal the post-2021 correction has been for long-term holders. According to TheCryptoBasic, SHIB is down roughly 93% from its all-time high of $0.0000885, now hovering near $0.00000613 - a level where the vast majority of holders remain deep in the red.
A Long SHIB Decline That Has Shifted Into Consolidation
The chart tells a clear story: a dramatic rise, followed by an extended downtrend marked by consistently lower highs and fading momentum. That sequence defined SHIB's structure for an extended period - a drawn-out correction rather than a quick flush and recovery.
More recently, though, something has changed. Price is no longer grinding lower with the same aggression. Instead, SHIB has started moving sideways, which often signals that selling pressure is beginning to exhaust itself. That kind of behavior typically marks the transition from a downtrend into consolidation.
Price is no longer making sharp breakdowns, and the range has tightened considerably compared to earlier stages of the decline.
Moving Averages Still Capping SHIB Price
The bigger technical problem remains overhead. SHIB is still trading below key moving averages, which sit above current price and act as dynamic resistance. Every attempt to push higher runs into these levels, keeping the broader structure bearish.
Until SHIB can actually reclaim those averages, the market remains structurally weak. This is a pattern seen across many assets - failure to regain key moving averages tends to keep prices locked in prolonged consolidation phases, sometimes for months at a time.
Moving averages positioned above current price act as dynamic resistance, limiting upside attempts and reinforcing the broader bearish structure.
SHIB Stabilization Signs Begin to Appear
Despite the heavy drawdown, subtle shifts are worth noting. The selling is less aggressive, the range has tightened, and price isn't making new legs down at the same pace it once was.
This kind of behavior mirrors what has historically been observed during SHIB accumulation phases - extended sideways movement that can precede stronger directional moves. It doesn't guarantee a breakout, but it does suggest that distribution may be slowing.
Key observations at this stage:
- SHIB is no longer printing sharp breakdowns
- Price range has compressed compared to earlier decline stages
- Sideways movement is replacing the pattern of lower highs
Still Underwater, but the Structure Is Improving
The core takeaway is that SHIB remains deeply discounted relative to its peak, but the deterioration has slowed. The structure isn't getting worse at the same rate - and that alone is a meaningful shift after months of sustained selling.
Recent price action shows that even small recoveries can trigger sharp sentiment shifts.
Even modest bounces are having an outsized effect on sentiment. When SHIB rebounded toward the $0.0000063 area alongside rising volume, it sparked $50K in short liquidations - a sign that positioning is sensitive and that the market could move quickly if momentum builds.
For now, SHIB sits in a transitional zone - still far from any meaningful recovery high, but showing the early signals that a prolonged downtrend may be giving way to something more stable.
Alex Dudov
