Shiba Inu (SHIB) continues to navigate a challenging market environment this August. Recent technical analysis suggests that the meme coin could face further downside if current trends persist.
In a recent update, analyst Cryptorphic highlighted key support and resistance levels that could determine SHIB’s price action in the near future.
Shiba Inu Key Support and Resistance Levels
Notably, the analysis took a comprehesve observation of SHIB on the weekly timeframe. It found that the asset hovers between a critical support level at $0.000006836 and a primary resistance level at $0.00001799 as Shiba Inu is trading at approximately $0.000013401.
Notably, the price has been following a downward-sloping resistance trendline, which currently intersects around $0.000025. This trendline has consistently capped Shiba Inu’s attempts at recovery, keeping the asset in a prolonged downtrend.
Furthermore, the analyst observed that Shiba Inu’s Relative Strength Index (RSI) is nearing the oversold zone. While this could indicate that SHIB is undervalued and might see a price bounce, the overall market conditions suggest caution, according to the analyst.
A move below the more immediate support at $0.00001073 could see SHIB testing lower levels. In a separate analysis, another market watcher noted that Shiba Inu could find support around the $0.000008 region, which, if breached, could imply SHIB is headed toward the $0.000006836 mark.
For context, this price level would mark a considerable 50% drop from Shiba Inu’s current value.
Shiba Inu Can Still Rally 1,197% to ATH
However, Cryptorphic’s analysis also points out the potential for a market reversal. He noted that a quick market shift could alter the current bearish outlook, though he noted this still requires confirmation.
Nonetheless, if bullish momentum returns, SHIB could break through the resistance levels, with an ambitious target near its previous all-time high of $0.000088640. More immediate resistance levels are noted at $0.000023 and $0.000025.
Remarkably, Cryptorphic expects Shiba Inu’s market sentiment to completely reverse if the bears drive SHIB to the $0.000006836 support level. He foresees a massive wave driving a strong 1,197% rally to the ATH level in such a scenario.
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