**Shiba Inu Experiences Ongoing Bearish Pressure as Price Fails to Surpass 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. After recovering from a six-month low, SHIB has faced challenges in overcoming its immediate resistance levels.
The price has remained within a tight range, reflecting a cautious sentiment in the market. While there have been fleeting opportunities for upward movement, the token continues to be ensnared in a larger bearish trend. Moreover, market sentiment and supply distribution indicators point towards a pessimistic outlook for the token.
This bearish sentiment heightens the risk of the SHIB/USD exchange rate potentially plummeting by nearly 74%, influenced by a technical configuration known as the ‘descending triangle.’
**Bearish Signals for Shiba Inu Remain Strong**
Recent analyses of SHIB’s market performance highlight a continued bearish perspective for the token.
*SHIB OI-weighted funding rate. Source: Coinglass*
The OI-weighted funding rate for SHIB has consistently shown negative values, suggesting that short positions are increasingly prevalent. This trend reflects traders’ growing inclination to bet against SHIB, indicating a lack of confidence in its short-term price prospects.
*Shiba Inu futures open interest.*
Additionally, SHIB futures contracts have seen a notable decrease in open interest since February 2024, signaling a clear decline in speculative interest. This drop in open interest typically precedes reduced price volatility and indicates a waning belief in any imminent bullish turnaround for SHIB.
*SHIB supply distribution by balance of addresses. Source: Santiment*
Furthermore, the distribution chart reveals a concerning trend among SHIB holders. Although smaller investors have been accumulating SHIB, larger holders—who usually possess better market insights—are scaling back their positions. This shift in distribution, with significant holders reducing their stakes, suggests that informed investors anticipate further declines in the SHIB/USD pair. The accumulation by smaller holders, likely motivated by speculation rather than strong conviction, fails to counterbalance the bearish sentiment created by the departure of larger investors.
Despite occasional rallies in SHIB driven by short-term bullish sentiment and community initiatives, the overall technical indicators and on-chain data suggest a bearish forecast.
**SHIB Price Struggles to Surpass Immediate Resistance**
The SHIB/USD exchange rate surged nearly 12% on August 8, likely in response to the ruling in the SEC Ripple lawsuit. However, by August 9, bearish pressure returned, causing the token’s price to drop as DOGE also struggled to maintain support near $0.0000139.
*SHIBUSD daily price chart with RSI. Source: Tradingview*
The strong selling pressure encountered near the immediate resistance indicates a waning buying momentum. Bulls are finding it difficult to sustain the upward movement, and if this trend persists, SHIB could decline to immediate support at $0.0000122. A breach below this level may amplify selling pressure, potentially driving the price down to $0.0000111.
On the other hand, should SHIB manage to rebound, it would encounter initial resistance at $0.0000143, with further upside potential targeting the 0.786 Fibonacci retracement level around $0.000016. The relative strength index (RSI) remains neutral at 38.06, suggesting that SHIB is neither in oversold nor overbought territory, leaving room for volatility in either direction.