Shiba Inu (SHIB) bulls are facing a significant challenge as the popular meme coin struggles to maintain its position above crucial support levels. After weeks of trading within a horizontal range, SHIB has broken below its lower boundary, setting the stage for a potential 23% decline. This development has sent shockwaves through the crypto community, raising concerns about the immediate future of the asset.
Shiba Inu (SHIB) Bulls Struggle to Maintain Support
Since August 8, Shiba Inu (SHIB) has been consolidating within a horizontal channel, with resistance at $0.000014 and support at $0.000012. This range-bound movement reflected a delicate balance between Shiba Inu (SHIB) bulls and bears, with neither side able to push the price decisively in either direction. However, the situation took a turn for the worse on August 28, when SHIB briefly broke above the upper boundary of the channel but quickly fell back below resistance, failing to sustain the breakout.
Following this failed attempt to break higher, SHIB began to move towards the channel’s lower boundary, which had previously acted as support. Unfortunately for Shiba Inu (SHIB) bulls, the coin has now broken below this critical level, signaling a shift in market sentiment from neutral to bearish.
Bearish Technical Indicators Confirm Downtrend
The technical indicators on SHIB’s one-day chart paint a grim picture for Shiba Inu (SHIB) bulls. The Directional Movement Index (DMI), a tool used to measure the strength and direction of a trend, shows the positive directional index (+DI) below the negative directional index (-DI). This indicates that selling pressure is now dominating the market.
Adding to the bearish outlook, the Relative Strength Index (RSI) for SHIB has fallen below its 50-neutral spot and was trending at 40.30 at the time of writing. The RSI is a momentum oscillator that measures the speed and change of price movements. When the RSI falls below 50, it suggests that sellers are more active than buyers, increasing the likelihood of further price declines.
“The current RSI level indicates that Shiba Inu (SHIB) bulls are struggling to find support,” added Smith. “With the RSI trending lower, it’s likely that we’ll see more downside pressure on SHIB in the near term.”
Shiba Inu (SHIB) Bulls Face an Uphill Battle
The recent breakdown below the consolidation channel’s lower boundary has sparked fears of a deeper decline for Shiba Inu (SHIB). If the current downtrend persists, SHIB’s price could face a further 23% drop, bringing it back to its August 5 low of $0.00001. This scenario would mark a significant setback for Shiba Inu (SHIB) bulls, who had hoped that the coin’s recent price action was the beginning of a new uptrend.
Despite the bearish signals, some analysts believe that Shiba Inu (SHIB) bulls could still mount a comeback if buying pressure increases. If SHIB can retest its recent breakout and successfully reverse, it could signal the start of a new uptrend. In this scenario, SHIB’s price might rally toward the resistance level of $0.000014 and potentially break above it, targeting the $0.000018 mark.
Market Sentiment Remains Cautious
The recent price action has left many Shiba Inu (SHIB) investors feeling uneasy. The failure of Shiba Inu (SHIB) bulls to hold support levels, coupled with bearish technical indicators, suggests that the market is in a precarious position. With the possibility of a 23% decline looming, investors are likely to remain cautious until clearer signals of a reversal emerge.
For now, the fate of Shiba Inu (SHIB) bulls hangs in the balance, with the coin’s price teetering on the edge of further declines. Whether SHIB can find new support and reverse its fortunes remains to be seen, but one thing is clear: the battle between Shiba Inu (SHIB) bulls and bears is far from over.
