Shiba Inu Struggles After Bounce — Is Another Selloff Brewing?

• SHIB trades in a clear downtrend with weakening support at $0.0000053.

• On-chain data shows steady selling and limited whale accumulation.

• Failure to reclaim $0.0000060 keeps downside risk elevated.

Shiba Inu faces mounting pressure as bearish signals stack up. Price now hovers near $0.0000053 after a harsh February drop of 21.5%. Market structure no longer supports optimism. Each rebound stalls quickly under heavy resistance. Sentiment across the meme coin sector remains fragile. Traders watch closely as support weakens. The key question now centers on whether another sharp decline waits just ahead.

#SHIB Falling Wedge Support Holding Strong💪

Shiba Inu is maintaining its position above the lower border of the falling wedge formation on the 3-day chart💁‍♂️

Buyers are defending this established support zone as strength emerges from the consolidation phase👀

A confirmed… pic.twitter.com/oSRJJ2tDvF

— Jonathan Carter (@JohncyCrypto) March 4, 2026

Supply Pressure Builds as Support Weakens

SHIB trades within a clear short term downtrend. Lower highs continue to form. Lower lows confirm persistent selling pressure. Every rally fades before reclaiming meaningful resistance. Overhead supply near $0.0000065 continues to block upside attempts. Trapped buyers from earlier breakdowns likely add to that selling pressure. The broader environment offers little relief.

The Fear and Greed Index sits at 10. That reading signals extreme fear across crypto markets. Meme tokens often suffer most during risk off periods. Only about one third of SHIB trading sessions last month closed green. That statistic reflects sustained weakness rather than brief volatility. Price clings to the $0.0000053 demand zone. That level acts as the last nearby support barrier. Buyers defended that area once already. However, the rebound lacked strength.

A decisive break below $0.0000053 could open the door toward $0.0000050. That psychological level may attract attention, yet momentum could accelerate if panic spreads. Resistance layers stack above current price. Initial pressure appears near $0.0000058. Heavier supply rests around $0.0000060. Above that level stands $0.0000066, the origin of the last major breakdown. Bulls must reclaim at least $0.0000060 to signal genuine structural improvement.

On-Chain Signals Add to Bearish Outlook

On-chain data reinforces technical concerns. The Accumulation Distribution line trends lower on the daily chart. That pattern reflects steady net selling. Quiet accumulation usually precedes durable bottoms. Current flows show little evidence of coordinated buying. Whale activity also lacks conviction. Instead of aggressive accumulation, recent movements point toward distribution.

Large holders appear cautious rather than confident. That behavior rarely marks strong reversal zones. Exchange data adds another warning. Tokens moving onto exchanges during a decline often precede selling activity. Strong outflows to cold storage typically signal accumulation. Current trends do not show that behavior. The imbalance suggests preparation to sell rather than long term holding. Even the recent 5.55% bounce toward $0.00000633 failed to inspire confidence.

The move lacked sustained volume. Demand did not expand meaningfully. Without deeper participation, rebounds struggle to form lasting bases. For now, supply outweighs demand beneath the surface. Market structure remains fragile. Sentiment stays cold. Unless buyers reclaim key resistance levels soon, another selloff remains a realistic scenario.