- SHIB struggles at resistance, raising concerns over key support level.
- Declining volume threatens rally as bearish pressure begins to build.
- Price squeeze forms, risking drop toward crucial $0.00001000 support.
According to market data, Shiba Inu (SHIB) has faced a sharp rejection at a key descending trendline, heightening concerns of a potential slide toward critical support levels. The latest recovery rally has stalled at around $0.00001420 due to the resistance that has halted price gains since late July. This failure has refocused the market on lower target prices.
The rejection has added pressure on support at the $0.00001000 level, which has remained very strong over months and is both technical and psychologically important. Traders are observing this point, and a decisive break below it would initiate a more intense wave of selling.
Fading trading volume has also dimmed hopes further as a sign that the buying interest is waning. Without a significant uptick in participation, SHIB could find it increasingly difficult to sustain any bullish momentum. Weakening volume profile also increases the potential of more aggressive pullbacks in the near term.
Market analysts observe that the invalidation of a potential local double-top reversal attempt has helped to strengthen the existing bearish formation. Instead of breaking higher, SHIB was pushed lower by sellers at the trendline, underlining the market’s cautious sentiment.
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$0.00001000 Support Becomes Key Battleground
SHIB is now showing signs of price compression between the overhead descending resistance and a rising trendline support near $0.00001280. This is a tightening range, which may break out to the upside or downside, and the technical backdrop and low volume suggest a negative breakout.
Source: Tradingview
If the price does not hold at the level of $0.00001280, the next significant test will be at the level of $0.00001000. A failure below this level would wipe out much of the recent recovery rally and leave the way open to further losses. This would cause a tremor in market confidence and invite more selling pressure.
To shift the outlook, bulls will need to push SHIB above resistance with strong and sustained volume. Without such a shift, the current downtrend may be preserved, and the token will be at risk of further losses.
The failure of Shiba Inu to move above its downward trendline has strengthened the bearish sentiment, and the most crucial support level to observe is at $0.00001000.
Weak trading activity continues to weigh on the market, increasing the risk of further declines if sellers gain momentum.
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