Shiba Inu bulls fail: here's why
2024-09-04

Shiba Inu (SHIB), a leading meme coin, has been trading within a horizontal range since August 8. While it briefly surged past the upper boundary of this channel, it failed to sustain the breakout and dropped back below resistance on August 28.

Following this, SHIB moved toward the channel’s lower boundary, which acted as support. However, the coin has now broken below this key level, signaling increased selling pressure and the likelihood of further declines in SHIB’s value. 

A market is said to be in consolidation when an asset trades within a horizontal channel, meaning its price moves within a defined range for a period of time. The upper boundary of this channel represents resistance, while the lower boundary acts as support.

In the case of Shiba Inu (SHIB), this consolidation saw the asset facing resistance at $0.000014, while bulls provided support at $0.000012. This sideways movement highlighted the balance between buying and selling pressures in the SHIB market, preventing the coin’s price from making a strong move in either direction during this period.

If Shiba Inu (SHIB) retests its recent breakout and successfully reverses, it could signal the start of a new uptrend. With sufficient buying pressure, SHIB’s price might rally toward the resistance level of $0.000014 and potentially break above it.

If this occurs, the meme coin could aim for the $0.000018 mark.

However, if the current downtrend persists, SHIB’s value could face a further 23% drop, bringing it back to its August 5 low of $0.00001. This scenario would indicate a deeper bearish outlook, with selling pressure continuing to weigh on the coin’s price.