Technical analyst Ali Martinez has issued a stark warning for Shiba Inu (SHIB), highlighting a critical breakdown on its weekly chart that could signal a dramatic price decline. Martinez pointed out that SHIB's price has broken below the support line of a long-standing Parallel Channel, a technical pattern that had contained its price action for several years.
The chart analysis reveals that SHIB retested the upper boundary of this channel twice in 2024, facing rejection each time. Throughout 2025, the memecoin consolidated near the channel's midline before a decline in the last quarter pushed it toward the support line. The bearish momentum continued into 2026, leading to a failed rebound and a definitive break below this crucial support level.
According to Martinez, a breakout from a Parallel Channel often leads to a sustained move in the direction of the break, potentially equal to the height of the channel itself. Based on this principle, he has identified a downside target of $0.00000138, which would represent a staggering 77% decline from SHIB's current price level.
Concurrently, the broader market outlook for SHIB suggests a period of heightened uncertainty and volatility. Following a prolonged downtrend to multi-month lows, the token is struggling to establish clear directional momentum. While intense selling pressure has eased, buying interest remains insufficient to fuel a strong recovery.
Technical indicators support a choppy, consolidating phase. SHIB remains below its key downward-sloping moving averages, which act as dynamic resistance. Momentum oscillators have moved out of oversold territory but show no signs of bullish acceleration. Inconsistent trading volume further underscores market indecision, creating conditions for erratic, range-bound price action where breakouts often fail quickly.
At the time of the analysis, Shiba Inu was trading around $0.00000615, down 2% over the previous week. Traders are advised to watch for volume improvements on upward moves and stabilization above recent support levels for signs of a potential trend change.
