Shiba Inu Consolidates with Downside Risk Intact

Shiba Inu Consolidates with Downside Risk Intact

On the 4-hour chart, price action shows Shiba Inu trading below the 9-period DEMA, which is positioned at $0.00001260. This moving average has acted as a dynamic resistance line, with SHIB struggling to stay above it. The narrowing of the Bollinger Bands suggests a potential breakout, but the price’s proximity to the lower band signals that downward pressure remains intact.

Support levels are clustered between $0.00001209 and $0.00001109, which have repeatedly provided temporary relief during the ongoing correction. However, each bounce off these levels has been weaker, indicating that buying interest may be fading. If bears manage to push the price below $0.00001209, a retest of the $0.00001109 support zone could follow.

Resistance continues to cap upward momentum, particularly around the $0.00001301–$0.00001311 range. This zone has consistently rejected bullish advances, and the last significant attempt to break out, when SHIB rallied above $0.00001763 in May, was short-lived. Since then, the token has been printing lower highs and lower lows, reinforcing a bearish market structure.

Currently, SHIB remains in a consolidation phase, with the price coiling between dynamic support and resistance zones. The compressed Bollinger Bands hint that a breakout may be imminent, but the direction remains uncertain. Bulls need a clean move above $0.00001311 to regain momentum and target higher levels around $0.00001500. On the other hand, failure to hold support could result in a deeper pullback toward $0.00001109 or lower.

Shiba Inu is trading in a tight range amid a prevailing downtrend, with short-term relief rallies repeatedly failing to change the broader bearish outlook. Traders should watch for a decisive move outside the current consolidation zone to gauge SHIB’s next direction.