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The recent rejection of the Shiba Inu price at a local descending trendline was a major setback, suggesting that bullish momentum is having difficulty gaining traction and traders are not ready to support the current rally. The trendline that has been pushing SHIB's price down since the late-July highs act as strong resistance after the market recovered toward $0.00001420.
Shiba Inu denied
This most recent denial now raises a major question for the $0.00001000 support level, which may be impacted if selling picks up speed. The consistent drop in trading volume adds to the cautious outlook. SHIB may find it more challenging to overcome significant resistances if lower volume during recent price pushes indicates that buying conviction is waning.
In the absence of a volume surge upward, movements run the risk of being transient, making the asset susceptible to more severe pullbacks. Another warning sign in the technical picture was the invalidation of a possible local double-top reversal attempt. The dominance of bearish technical structures in the current market setup was further reinforced when SHIB was pushed back rather than breaking higher.
Chance for bullish squeeze
From a structural perspective, SHIB might be about to enter a price squeeze between the descending resistance above and its rising trendline support, which is currently located close to $0.00001280. This compression may result in a clear breakout in either direction, but the risk leans toward a decline given the declining volume and recent denial.
The area around $0.00001000, which has been a crucial psychological and technical support for months, is the next significant downside target if the $0.00001280 level fails. Losing that level might pave the way for a more severe correction, which might erase a large portion of the most recent recovery rally.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team