Shiba Inu Price Drops 10%, Erasing Breakout Gains as Volume Falters

Shiba Inu (SHIB) has dropped nearly 10%, falling back to pre-rally levels and wiping out its recent breakout gains. Currently trading at $0.00001273, the meme coin sits just above key support, signaling that the recent price surge was a classic fakeout — a short-lived rally that failed to sustain momentum and trapped bullish traders.

Just days ago, SHIB showed bullish potential after breaking above the 50-day EMA and resistance at $0.00001400. With eyes on the 100 EMA near $0.00001640, traders anticipated a trend reversal. However, buying pressure quickly faded, and SHIB was rejected, leading to a sharp decline that erased all short-term gains.

The biggest challenge facing Shiba Inu now is its inability to maintain trading volume. Although the rally sparked temporary interest, it lacked sustained demand. Current volume levels have flattened, highlighting a lack of liquidity and buyer conviction needed for continued upward movement.

SHIB now hovers around a critical support zone between $0.00001270 and $0.00001300. If this level fails to hold, the price may revisit the $0.00001200 range — a major accumulation area from March. Technical indicators also paint a bearish picture, with the Relative Strength Index (RSI) at 43.91, suggesting weakening momentum and minimal chance of a near-term recovery.

While Shiba Inu's Shibarium network edges closer to a milestone of 1 billion transactions, price action remains under pressure. Without renewed interest or significant volume, SHIB risks further downside, emphasizing the need for stronger fundamentals and market confidence to fuel its next potential breakout.