**Shiba Inu Struggles Against Ongoing Bearish Trends as Price Fails to Overcome Resistance**
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NOIDA (CoinChapter.com)— Since August 5, Shiba Inu (SHIB) has entered a phase of consolidation characterized by minimal price fluctuations and low volatility. Although it has bounced back from a six-month low, SHIB continues to face challenges in surpassing its immediate resistance levels.
Currently, the price remains within a tight range, reflecting a cautious attitude among investors. Even though there have been sporadic upward movements, the token is still ensnared in a larger bearish trend. Market sentiments and supply distribution data further signal a pessimistic perspective for SHIB.
This bearish sentiment raises the possibility of the SHIB/USD exchange rate plummeting by nearly 74%, driven by a technical formation known as the ‘descending triangle.’
**Persistent Bearish Indicators for Shiba Inu**
Recent analyses of SHIB’s market performance reinforce a bearish outlook for the token.
SHIB OI-weighted funding rate. Source: Coinglass
The OI-weighted funding rate for SHIB reveals a consistent negative value, indicating a surge in short positions. This trend implies that traders are increasingly betting against SHIB, highlighting a lack of confidence in its short-term price trajectory.
Shiba Inu futures open interest.
Furthermore, the open interest for SHIB futures contracts has seen a notable decline since February 2024, indicating a clear drop in speculative interest. A falling open interest typically precedes decreased price volatility and suggests a waning belief in a potential bullish turnaround for SHIB.
SHIB supply distribution by balance of addresses. Source: Santiment
Lastly, the distribution chart indicates a concerning trend among SHIB holders. While smaller investors have been accumulating SHIB, larger holders—who usually possess better market insights—are trimming their positions. This shift in distribution, wherein whales are reducing their stakes, signals that more informed investors expect further declines in the SHIB/USD pair. The accumulation by smaller holders, likely driven by speculative enthusiasm rather than firm conviction, fails to counteract the bearish sentiment associated with the departure of larger players.
Despite occasional rallies fueled by short-term optimism and community efforts, the prevailing technical and on-chain indicators point toward a bearish future for SHIB.
**SHIB Price Struggles to Surpass Immediate Resistance Levels**
On August 8, the SHIB/USD exchange rate surged by nearly 12%, likely in response to the favorable ruling in the SEC Ripple case. However, bears regained control on August 9, leading to a price drop after DOGE failed to maintain support around $0.0000139.
SHIBUSD daily price chart with RSI. Source: Tradingview
Intense selling pressure near immediate resistance suggests weakening buying momentum. Bulls are finding it difficult to sustain the uptrend, and if this pattern persists, SHIB may retreat to immediate support at $0.0000122. A breakdown below this level could amplify selling pressure, potentially driving the price down to $0.0000111.
Conversely, should SHIB manage to bounce back, it would encounter initial resistance at $0.0000143, with further upward potential targeting the 0.786 Fibonacci retracement level around $0.000016.
The relative strength index (RSI) currently stands neutral at 38.06, indicating that SHIB is neither oversold nor overbought, leaving room for volatility in either direction.