Shiba Inu Faces Persistent Bearish Pressure as Price Struggles to Break Resistance Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Since August 5, Shiba Inu (SHIB) has been experiencing a phase of consolidation, marked by limited price movement and subdued volatility. After rebounding from a six-month low, SHIB has struggled to break past its immediate resistance levels.
The price has hovered around a narrow range, reflecting cautious market sentiment. Despite brief moments of upward movement, the token remains trapped in a broader bearish pattern. Furthermore, market sentiments and supply distribution metrics indicate a bearish outlook for the token.
Additionally, the bearish outlook aggravates the risk of the SHIB USD exchange rate dropping nearly 74%, thanks to a technical setup called the ‘descending triangle.‘
Bearish Signals Against Shiba Inu Persist
The recent charts of SHIB’s market performance underscore a bearish outlook for the token.
SHIB OI-weighted funding rate. Source: Coinglass
SHIB’s OI-weighted funding rate shows a sustained negative value, indicating that short positions are becoming increasingly dominant. The trend suggests that traders are more inclined to bet against SHIB, reflecting a lack of confidence in its near-term price potential.
Shiba Inu futures open interest.
Moreover, the open interest for the SHIB futures contracts has suffered a significant decline in SHIB futures’ open interest since Feb. 2024, marking a clear reduction in speculative interest.
The declining open interest is usually a precursor to lower price volatility but also suggests a diminishing belief in any immediate bullish reversal for SHIB.
SHIB supply distribution by balance of addresses. Source: Santiment
Finally, the distribution chart shows a troubling shift among SHIB holders. While smaller holders have been accumulating SHIB, larger holders—those who typically have better market insights—are reducing their positions.
The shift in distribution, with whales or large holders decreasing their stake, signals that informed investors anticipate a further decline in the SHIB USD pair. The accumulation by smaller holders, likely driven by speculative motives rather than strong conviction, does not offset the bearish sentiment created by the exit of larger players.
Despite SHIB’s intermittent rallies driven by short-term bullish sentiment and community initiatives, the overall technical and on-chain data point to a bearish outlook.
SHIB Price Fails To Move Above Immediate Resistance
The SHIB USD exchange rate jumped nearly 12% on Aug. 8, likely celebrating the judgment in the SEC Ripple lawsuit. However, bears were back in business on Aug. 9, forcing the token to drop after DOGE price failed to Rally above immediate support near $0.0000139.
SHIBUSD daily price chart with RSI. Source: Tradingview
The strong selling pressure near the immediate resistance suggests that buying momentum is weakening. Bulls are struggling to sustain the rally, and if this trend continues, SHIB could drop to the immediate support at $0.0000122.
A break below this level could intensify selling pressure, potentially pushing the price down to $0.0000111.
Conversely, if SHIB manages to recover, it would face initial resistance at $0.0000143, with further upside potential targeting the 0.786 Fibonacci retracement level near $0.000016.
The relative strength index (RSI) remains neutral at 38.06, indicating that SHIB is neither oversold nor overbought, leaving room for volatility in either direction.
The post Shiba Inu Faces Persistent Bearish Pressure as Price Struggles to Break Resistance appeared first on CoinChapter.
