**Shiba Inu Continues to Face Ongoing Bearish Pressure as Price Struggles Against Resistance**
NOIDA (CoinChapter.com) – Since August 5, Shiba Inu (SHIB) has entered a period of consolidation characterized by minimal price fluctuations and low volatility. After a rebound from a six-month low, SHIB has found it challenging to surpass its immediate resistance thresholds.
The token’s price has remained within a tight range, reflecting a cautious sentiment in the market. Despite occasional surges, SHIB is ensnared in a broader bearish trend. Additionally, current market sentiments and supply distribution metrics suggest a pessimistic outlook for the token.
Moreover, this bearish perspective heightens the risk of the SHIB/USD exchange rate plummeting by nearly 74%, influenced by a technical formation known as the ‘descending triangle.’
**Bearish Indicators for Shiba Inu Linger**
Recent charts depicting SHIB’s market activity reinforce a bearish sentiment surrounding the token.
SHIB’s open interest (OI)-weighted funding rate has consistently shown negative figures, signaling an increasing prevalence of short positions. This trend indicates that traders are more inclined to bet against SHIB, reflecting a lack of optimism regarding its short-term price trajectory.
Additionally, the open interest in SHIB futures contracts has seen a notable decline since February 2024, indicating a clear drop in speculative interest. A declining open interest typically precedes reduced price volatility and suggests waning belief in any imminent bullish turnaround for SHIB.
The supply distribution chart reveals a concerning trend among SHIB holders. While smaller holders have been accumulating SHIB, larger holders—who generally possess superior market insights—are scaling back their investments. This shift in distribution, where whales or significant holders are reducing their stakes, indicates that informed investors expect a further downward movement in the SHIB/USD pair. The accumulation by smaller holders, likely driven more by speculation than strong conviction, fails to counterbalance the bearish sentiment generated by the exit of larger players.
Despite SHIB’s sporadic rallies fueled by short-term positive sentiments and community initiatives, the overarching technical and on-chain data point toward a bearish future.
**SHIB Price Struggles to Surpass Immediate Resistance**
On August 8, the SHIB/USD exchange rate surged nearly 12%, likely in response to the verdict in the SEC Ripple lawsuit. However, the optimism was short-lived, as bears regained control on August 9, leading to a price decline after DOGE failed to rally above crucial support near $0.0000139.
The significant selling pressure near the immediate resistance level indicates a weakening buying momentum. Bulls are finding it increasingly difficult to maintain the rally, and if this trend persists, SHIB could fall to immediate support at $0.0000122. A breach below this level could escalate selling pressure, potentially driving the price down to $0.0000111.
On the other hand, if SHIB manages to recover, it will encounter initial resistance at $0.0000143, with further upside potential targeting the 0.786 Fibonacci retracement level near $0.000016. The relative strength index (RSI) currently stands neutral at 38.06, suggesting that SHIB is neither oversold nor overbought, leaving room for volatility in either direction.