SHIB Price Prediction: Shiba Inu Could Face More Pain After This Bearish Breakdown

Shiba Inu looks to have yet another difficult day as it falls below the bearish flag pattern, which usually happens before the start of a continuation of the downtrend. According to crypto analyst Four, the SHIB price had been falling for some time now, as it has broken below an important support channel, placing sellers in the driver’s seat.

The fascinating thing about this trend is that even on a short-term and long-term chart, SHIB shares the same tale. It has been making lower highs and lower lows, trading below the vital moving averages.

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Shiba Inu’s 4-Hour Chart Favors the Bears

A look at the SHIB 4-hour chart shared by Four shows the bearish flag in play. Before the flag formation, the SHIB price was falling from $0.0000078 to $0.0000052, hence a fall of approximately 33%.

This price fall saw SHIB trading sideways between $0.0000052 and $0.0000056 for some few weeks, resulting in the flag formation. As of the time of writing, the price of SHIB is trading around $0.00000532, which is almost similar to the 200 period EMA.

This is quite important as it shows that a bearish confirmation will happen once SHIB moves below $0.0000052, with the next support coming in at levels ranging between $0.0000038 – $0.0000040. On the other hand, when SHIB moves above $0.0000056, the bears will be less.

The SHIB Daily Chart Still Points Lower

Even when looking at a broader timeframe, not much has changed. The SHIB price has been fluctuating around $0.00000499, marking an almost 14% fall from its trading above the 100-day Simple Moving Average of $0.00000581. The SHIB price has been unable to break above that moving average line since late 2025.

The extent of the drop should be considered as well. The crypto was trading around $0.00002000 prior to the current decline, marking a loss of around 75%. The momentum indicator is also not in favor of bulls. The daily RSI is trading at 42.49, marking a reading that is lower than 50 but higher than oversold.

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Shibarium Gives Investors Something to Watch

Even with the weak chart structure, the project continues to expand its ecosystem. Shibarium, Shiba Inu’s Layer-2 network, is introducing features such as auto-burn mechanisms, precision liquidity pools, and AI-related initiatives. 

The goal is simple: increase network activity and create more reasons for users to interact with SHIB beyond meme coin trading. If adoption grows, higher transaction volumes could lead to more token burns and stronger demand across the ecosystem.

The regulatory picture has also improved. In March 2026, the SEC classified SHIB as a digital commodity, making it easier for institutions to consider investment products tied to the token. That classification has already opened the door for multi-asset ETF proposals that include SHIB.

SHIB Supply Is Falling, but the Numbers Are Still Huge

In terms of supply burning, the SHIB community has already burnt in excess of 410 trillion tokens while the number continues to fall as expected. The blockchain has even seen many whale wallets pull out in excess of hundreds of billions of SHIBs off exchanges, thereby reducing the tokens available for selling.

Despite this, the circulating supply is still hovering around 589 billion tokens meaning that supply burning alone cannot turn around things anytime soon. For now, SHIB finds itself between two competing factors: a bullish fundamental backdrop and a bearish technical trend. 

FAQs

Can Shibarium help SHIB price recover

Shibarium may support long-term demand through burns and ecosystem usage, but current adoption levels still need to increase before it has a strong effect on price direction.

What is the biggest risk for SHIB right now

The biggest risk is continuation of the bearish structure with breakdown below support levels, which could accelerate downside moves.