Shiba Inu remains under technical pressure, as a steady pattern of lower highs continues to shape its short-term price action and block a meaningful reversal.
Although Shiba Inu recently bounced above the $0.000006 region, some market watchers believe the structure remains bearish. They see further downside risk unless bulls decisively reclaim key resistance levels.
Key Points
- Shiba Inu remains under pressure, with a pattern of lower highs dictating short-term price action.
- Ongoing selling pressure has confined SHIB within a descending channel, reinforcing the prevailing bearish trend.
- If the recent rebound loses momentum, the token is likely to resume its downward move toward lower support levels.
- Immediate resistance is positioned at $0.0000062, while critical support lies near $0.0000057.
Shiba Inu Faces Potential Dip
In a recent analysis, veteran trader GainMuse suggested that Shiba Inu faces persistent selling pressure, with price action trapped inside a descending channel. The repeated formation of lower highs highlights the market’s inability to sustain upside momentum and reinforces the prevailing bearish trend.
Notably, SHIB attempted a rebound recently, rallying from $0.0000055 to around $0.0000064. However, it quickly stalled at local resistance, suggesting buyers lack the strength to spark a breakout. Consequently, GainMuse expects another leg down, potentially dragging SHIB back toward the lower boundary of the channel.
Key Levels to Watch
The analyst identifies immediate resistance at $0.0000062 and critical support near $0.0000057. With SHIB trading around $0.000006018, it remains below resistance.
Therefore, as long as the price stays capped beneath this level, downside risks persist. Notably, a breakdown below support could accelerate losses and drive SHIB toward $0.000005, a level it hit during last week’s market sell-off.
While GainMuse holds a bearish bias, analyst Ali Martinez projects an even steeper decline. After reviewing SHIB’s weekly chart, Martinez projected that the token is breaking down from a larger channel, a move that could ultimately open the door to a drop toward $0.00000138.
Financial Markets Remain Under Bearish Pressure
Notably, these bearish assessments come as the broader financial markets plunged again yesterday, wiping out roughly $3.6 trillion in two hours. Although gold and silver absorbed most of the losses, the crypto market also shed about $70 billion from its total market capitalization.
Shiba Inu joined the sell-off, sliding to $0.000005939 before rebounding slightly above $0.000006. However, the token still trades below the $0.0000062 resistance level, keeping the bearish structure intact.
If SHIB breaks above the descending trendline and sustains momentum above $0.0000062, the bearish bias could begin to fade, potentially triggering a short-term trend shift.