Shiba Inu (SHIB), one of the popular meme coins, has been experiencing a challenging period in the market. Since August 8, SHIB has been trading within a narrow range. Although there was a brief surge above this range, the momentum did not last. By August 28, the coin had slipped back below the key resistance level.Â
As SHIB approached the lower end of its trading range, this area served as a temporary support. However, recent developments indicate that SHIB has now fallen below this crucial level. This drop suggests an increase in selling pressure and raises concerns about further declines in SHIB’s value.Â
Bulls Struggle as Bears Gain ControlÂ
A market typically consolidates when an asset’s price remains confined within a specific range, with resistance at the top and support at the bottom. For SHIB, the resistance level was at $0.000014, while support was found at $0.000012. During this consolidation phase, neither buyers nor sellers managed to push the price significantly in either direction.Â
However, the recent breach of the support level indicates that the bulls could not hold the line. This failure points to a shift in market sentiment, with selling pressure now dominating.Â
Technical indicators confirm this bearish trend. On the daily chart, the Directional Movement Index (DMI) shows the positive directional index (+DI) falling below the negative directional index (-DI), a clear signal that the market is leaning towards selling rather than buying.Â
Additionally, SHIB’s Relative Strength Index (RSI) is currently below the neutral mark of 50, sitting at 40.30. This suggests that more market participants are selling SHIB rather than buying, further pressuring its price.Â
Market Outlook: A 23% Drop on the Horizon?Â
There is still a chance for SHIB to recover if it can retest the recent breakout and reverse the downtrend. With enough buying momentum, SHIB could climb back to the resistance level at $0.000014 and potentially break through it, aiming for a target of $0.000018.Â
However, if the downward trend continues, SHIB could face a further 23% decline, potentially dropping to $0.00001, a level last seen in early August. This scenario would reflect a deeper bearish sentiment in the market, with selling activity driving SHIB’s price lower.Â
