Shiba Inu Holds the Line, Price Barely Dodges Adding Another Zero But Bears Loom

Shiba Inu recently avoided what many investors feared most: adding another zero to its price, which would make it trade with five zeros.

October began on a bullish note for Shiba Inu and the broader crypto market, with several assets posting notable gains. The rally fueled investor optimism for a sustained uptrend, prompting many to call the month “Uptober.” 

However, many did not anticipate a major downturn. Following the renewed trade war between China and the U.S. on October 10, Shiba Inu plunged from around $0.000012 to $0.000007448, adding a fifth zero for the first time in over a year. 

Shiba Inu Rebounds, Deletes a Zero 

Notably, Shiba Inu rebounded almost immediately, deleting the extra zero on October 11 as its price surged to a daily high of $0.00001072. Since then, the token has continued to face persistent bearish pressure, occasionally dipping below $0.00001 before quickly recovering. 

Shiba Inu’s latest recovery occurred yesterday, on October 21, after the leading meme-based token spiked from around $0.000009876 to a high of $0.00001055. 

Despite the recovery, Shiba Inu has fallen 69.66% from its December high of $0.00003329. Nonetheless, many in the Shiba Inu community consider its stay above $0.00001 as a psychological victory. 

Bearish Pressure Persists 

In the meantime, Shiba Inu continues to face significant selling pressure from investors. Between October 20 and 22, the token’s exchange reserves rose from 82.09 trillion to 82.14 trillion SHIB. This signals that more holders are moving their tokens to exchanges for possible sale. 

Adding to the concern is a bearish signal on Shiba Inu’s price chart. Analysts have spotted a descending triangle, a bearish pattern that usually signals further downside.

The base of this triangle, which lies around $0.00001052, has been tested multiple times since April. If this support breaks, the price could drop to $0.000006. 

At the moment, Shiba Inu has shown resilience, managing to avoid adding another zero to its price for an extended period.

However, with investors increasingly transferring SHIB to exchanges, suggesting a potential intent to sell, and a bearish technical pattern emerging on the charts, the token’s recent rebound might be short-lived.