Saad Ullah
Shiba Inu (SHIB) is testing a crucial support that could decide if the summer rally continues or crashes. The meme coin sits right on its 200-day moving average after pulling back from recent highs.
Shiba Inu is facing its biggest test this summer. After rocketing above $0.000015 just weeks ago, SHIB has dropped back to $0.0000144 and is now sitting right on its 200-day EMA - a level that's make-or-break for what happens next.
This isn't just any old support line. The 200-day EMA has been a major roadblock for SHIB in the past, and now it's the last line of defense for bulls who are trying to keep this rally alive. If it holds, we could see another leg up. If it breaks, things could get ugly fast.
What Happens if SHIB Price Breaks Lower?
The chart doesn't look great if SHIB can't hold here. A daily close below the 200-day EMA would likely send the price down to $0.0000136, where the 50-day EMA is waiting. That's not a huge drop, but it would signal that the bears are taking control.
But here's where it gets scary - if that level breaks too, SHIB could tumble all the way down to $0.0000125. That's where a lot of previous buying happened (you can see it in the volume), and it lines up with the 100-day EMA. Basically, it would wipe out most of the summer gains.
SHIB Momentum Is Starting to Fade
The warning signs are already there. The RSI indicator is rolling over after being way overbought, which usually means the buying pressure is drying up. Even worse, the recent red candles are showing heavier volume, suggesting that sellers are getting more aggressive.
This feels different from the usual SHIB corrections we've seen before. After such a big breakout, the coin really needs to prove it can hold these levels. The next few days are going to be crucial - either SHIB bounces here and continues higher, or we're looking at a much deeper pullback that could kill the summer vibe completely.
Saad Ullah
