Shiba Inu (SHIB) Cryptocurrency Market Has Slipped into Bearish Territory

The cryptocurrency market has slipped back into bearish territory, and Shiba Inu (SHIB) is closely reflecting this broader sentiment.

On May 3, SHIB is trading at $0.00001329, reflecting a modest decline of 1.03% over the past 24 hours. This small dip is also accompanied by a more significant drop in trading volume, which has decreased by 29.11% to $120.96 million.

The token’s market capitalization now stands at $7.82 billion, highlighting reduced investor participation as measured by the volume-to-market-cap ratio, currently sitting at a low 1.54%. This signifies a slowdown in activity.

Shiba Inu remains one of the most widely held meme-based cryptocurrencies, boasting approximately 1.5 million holders. Despite this large base, the recent decline in trading activity indicates a pause in bullish momentum.

The total supply of SHIB remains at 589.5 trillion tokens, and its fully diluted valuation is nearly identical to its current market capitalization, suggesting no inflationary pressures are expected in the immediate term.

From a technical standpoint, SHIB’s price action on the hourly chart is closely approaching a crucial support level at $0.00001329. If this support fails to hold, SHIB could see further decline toward $0.00001315.

This minor but crucial support level may serve as a short-term trigger point for either a bounce or a deeper correction depending on broader market conditions and investor sentiment.

Zooming out to the daily chart, no definitive signals of a bullish reversal are apparent. The candles continue to close near their lows, which is often seen as a sign of bearish pressure.

If this trend continues and the daily close remains weak, SHIB may slide further toward the $0.00001250 range. This level has served as a historical zone of interest for buyers and may offer some support if bearish momentum persists.

In terms of overall market behavior, there is a visible lack of strong directional movement. Neither buyers nor sellers are in full control, leading to an indecisive market environment.

This neutral trend could pave the way for sideways price action, especially if no significant macroeconomic or crypto-specific catalysts emerge in the near term.

In the short run, if SHIB manages to maintain its position near current levels, the price is likely to consolidate in a tight range between $0.00001330 and $0.00001450.

This would reflect a period of stabilization as the market assesses its next move. A breakout above this consolidation zone would indicate renewed bullish interest, while a breakdown below the lower bound may suggest further bearish continuation.

While Shiba Inu has proven its resilience as a meme token with strong community backing, its price remains vulnerable to broader market movements.

Investors and traders should closely monitor support and resistance zones, along with changes in trading volume, to gauge the direction of the next significant move.