Shiba Inu (SHIB), a leading meme coin, has been trading within a horizontal range since August 8. Although it briefly surged past the upper boundary of this channel, it failed to sustain the breakout and fell 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.
The upper boundary of the channel represents resistance, while the lower boundary acts as support. Shiba Inu faced resistance at $0.000014, while bulls provided support at $0.000012, indicating a balance between buying and selling pressures.
Shiba Inu’s recent breakdown below the lower boundary of its consolidation channel suggests that selling pressure from bears has overtaken buying interest, pointing to potential further price declines.
Technical indicators confirm this bearish trend. On the one-day chart, Shiba Inu's Directional Movement Index (DMI) reveals that its positive directional index (+DI) is positioned below the negative directional index (-DI), indicating bearish conditions.
Confirming the uptick in selling activity, the coin’s Relative Strength Index (RSI) was at 40.30, suggesting market participants favor distribution over accumulation, putting more pressure on its price.
If SHIB retests its recent breakout successfully, it could signal a new uptrend. However, if the downtrend persists, SHIB’s value could face a further 23% drop, bringing it back to its August 5 low of $0.00001.
