Shiba Inu Price Analysis: 4.2 trillion SHIB on the move amid US Fed decision, What Follows ?

Shiba Inu price moved above $0.000018, posting only its second gaining day on Fed rate pause, in 10 trading sessions dating back to Jan 18. Will SHIB rebound above $0.000020 or succumb to an early reversal.

Shiba Inu (SHIB) Rebounds 2.7% as Market Sell-off Subsides

Shiba Inu (SHIB) has experienced a modest price increase, moving above the $0.000018 level and posting a 2.7% gain on Wednesday as the cryptocurrency market processes the latest decision from the US Federal Reserve.

This slight uptick marks only the second positive trading day for SHIB in the last 10 days, dating back to January 18.

However, the overall market sentiment and technical indicators suggest that this rebound could be short-lived without a stronger catalyst.

The daily timeframe SHIB price chart reveals a mild 2.7% uptick at the time of writing, with SHIB trading at $0.000018.

This comes as the crypto markets are still digesting the latest US Fed decision.

The move above $0.000018 is notable, but it remains to be seen whether this is the beginning of a sustained recovery or merely a temporary respite in the broader downtrend.

Shiba Inu Trading Volumes down to $4.17 trillion, Flashing Bull-Trap Signals

While the rare uptick on Wednesday may be encouraging, it may not be enough for strategic investors to start mounting significant bullish bets.

Trading volume is a key signal that dictates the momentum behind directional price movements of assets.

According to IntoTheBlock‘s data, SHIB trading volume is at 4.17 trillion SHIB, with 4.17 trillion SHIB traded at the close of January 28.

This volume continues to trend below the 7-day average of 4.2 trillion, signaling that the rebound phase could be short-lived.

Shiba Inu volumes declining during a rebound phase could be interpreted as a potential bull-trap signal.

A bull-trap occurs when price action creates a false signal of a reversal to the upside, which then fails, trapping the newest buyers.

With Shiba Inu price action currently showing signs of indecision, traders will be closely watching broader market sentiment and liquidity flows in the coming days.

The next major test for SHIB bulls will be whether they can drive price action above the critical resistance zone at $0.000012, supported by a surge in trading volume.

Failure to do so could see SHIB slide back towards the $0.000017 level, where key support structures still exist.

Shiba Inu Price Forecast: Death Cross Formation Signals Resistance Ahead

Shiba Inu’s recent price weakness coincides with a developing death cross formation, where the 50-day simple moving average (SMA) is poised to cross below the 100-day SMA.

This bearish crossover historically signals extended downside potential unless countered by a strong surge in buying pressure. The downtrend remains intact, as SHIB continues to trade beneath both moving averages, reinforcing the prevailing bearish structure.

The Parabolic SAR indicator, which helps gauge trend direction, also shows resistance overhead, as its blue dots remain above price action. Until SHIB reclaims critical moving averages, any upward momentum may be fleeting.

With Shiba Inu price forecast currently showing signs of indecision, traders will be closely watching broader market sentiment and liquidity flows in the coming days. The next major test for SHIB bulls will be whether they can drive price action above the critical resistance zone at $0.000019, supported by a surge in trading volume. Failure to do so could see SHIB slide back towards the $0.000017 level, where key support structures exist.

Meanwhile, Bull-Bear Power (BBP) remains negative, underscoring weak market participation from bullish traders.

For now, the meme coin’s short-term outlook remains uncertain, with the latest rally lacking strong conviction. Market participants will need to see increased accumulation, reduced selling pressure, and a shift in momentum indicators before calling for a sustained bullish recovery.