Shiba Inu price came under pressure after one of the strongest rallies among major memecoins earlier this week. The token has fallen by nearly 11% in the last 24 hours as traders locked in profits following the asset’s sharp advance, which sparked renewed speculation across the memecoin market.

Shiba Inu Price Tests Key Support

Shiba Inu has recently moved back into a crucial technical zone that several traders are watching closely. An imbalance zone is seen between $0.0000042 and $0.00000485, where buying momentum could return if bulls remain in control. These price gaps are often revisited during corrections as markets search for liquidity before establishing their next direction.

Even with the pullback, Shiba Inu remains above its 20-day and 50-day exponential moving averages (EMAs) on the daily chart. Those averages are still higher, suggesting that the broader trend has not been invalidated despite the sharp near-term selling pressure.

SHIB Indicators Signal Short-Term Weakness

Momentum indicators also point to fading strength. The Stochastic RSI, which had remained overbought since the rally pushed it above 80, has begun to pull back, indicating that buying pressure is easing and that additional correction could follow in the near term. The midpoint of the imbalance zone, around $0.00000456, may serve as an initial area where buyers try to stabilize the Shiba Inu price.

On-chain data also shows additional pressure. One factor that previously helped support the token was its burn rate, and that rate has dropped significantly over the past 24 hours for SHIB.

Shiba Inu Price Awaits Bullish Recovery

Heavy liquidations were also recorded in the derivatives market during the sell-off. Leveraged traders unwound long positions, wiping out more than $2.1 million in long positions after the recent bull run.

The correction has weakened short-term momentum, but it also highlights how quickly sentiment can shift in a market driven by fast profit-taking and leveraged trades. For SHIB, the immediate focus remains on whether the current support area can absorb selling pressure without a deeper move through the imbalance zone. If support holds, the Shiba Inu price may stabilize and recover higher once selling pressure eases.

Conclusion

The next sessions will be important in determining whether the Shiba Inu price extends its rally or deepens its pullback. A defense of the key support zone could help revive buyer interest, while a clear break below that level could lead to additional selling before a new sustained trend forms.

Reference: Ambcrypto

The article is purely informational and is not financial, investment, or trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, readers should conduct personal research and seek advice from a qualified financial expert.