Shiba Inu has surrendered a key technical threshold that could trigger a significant price correction. The meme coin closed below its 20-day moving average yesterday, abandoning a support level that had anchored bullish expectations throughout January.
The breach opens a path toward the lower Bollinger Band at $0.00000718. SHIB currently trading at $0.00000840 means holders face a potential 14.36% decline if historical patterns hold.
Technical Structure Collapses
The breakdown marks a reversal of fortunes for SHIB. The token had remained above the mid-Bollinger Band for most of the month. That support zone acted as a reliable floor following the January 4 peak of $0.00000965.
The earlier rally followed a golden cross. The 23-day and 50-day moving averages completed a bullish crossover, a signal of upward momentum. Instead of extending gains, the price stalled.
Consolidation replaced continuation. The token circled the 20-day average without breaking higher. That sideways action has now given way to downward pressure.
The mid-band failure transforms the entire chart setup. What traders viewed as accumulation before a breakout now appears to be distribution before a correction. The 20-day moving average has flipped from support to resistance in a single session.
Momentum Indicators Point Lower
Volume patterns confirm weakening demand. Buying pressure has diminished while selling activity picks up. The combination suggests limited appetite to defend current price levels.
The lower Bollinger Band represents the primary downside objective. This technical marker sits roughly 14% below present values. Band-to-band moves are common in volatile assets like SHIB. The statistical tendency favors a test of the lower boundary unless buyers step in forcefully.
Recovery scenarios require swift action. SHIB needs to reclaim the 20-day average within the next 48 hours to prevent further deterioration. Without that reversal, downward drift becomes the path of least resistance.
Trading activity shows no signs of stabilization yet. Neither buying clusters nor defensive positioning has emerged around current levels. The absence of support bids increases the probability of continued weakness.
