Shiba Inu Maintains Bearish Bias After Failing to Break Key Resistance

Shiba Inu (SHIB) is now trading below a key support-turned-resistance level after a failed attempt to reclaim higher prices.

Another uptrend wave from Shiba Inu has stalled, particularly below a vital support level. The prominent meme coin attempted to reclaim this level but has failed, putting further bullish momentum in jeopardy.

Key Points

• Shiba Inu is now trading below a key support-turned-resistance level after a failed attempt to reclaim higher prices.
• SHIB attempted to reclaim the $0.00000815 support area on January 21 but met severe rejection, which kept it within bearish territory
• This support remains crucial for Shiba Inu, as it appears to be the next area to reclaim to confirm a bullish reversal.
• With the rejection, the next likely target for SHIB would be to retest a separate ascending trendline support at $0.00000783.
• However, this might not be the case for Shiba Inu if it breaks above $0.00000815.

Shiba Inu and the $0.00000815 Support Level

Shiba Inu attempted to reclaim the $0.00000815 support area on January 21 but met severe rejection. An accompanying 30-minute chart shows a push as the broader market recovered, which faced strong selling pressure.

Shiba Inu Analysis

Notably, this support is crucial for Shiba Inu, as it appears to be the next area to reclaim to confirm a bullish reversal. Bulls also attempted to facilitate this breakout on January 19, when SHIB climbed to $0.00000814 but faced a similar rejection.

The rejection yesterday has sparked a 3% correction, bringing SHIB’s current market price to $0.00000789. It has also ensured that SHIB remains well within bearish territory, making corrections to lower prices more possible.

What Could Happen Next?

Remarkably, yesterday’s attempt to reclaim the support-turned-resistance level saw it break out of a descending trendline. The neckline resistance trends back to the January 18 peak of $0.00000847 and has since suppressed bullish momentum until Wednesday.

With the rejection, the next likely target for SHIB would be to retest a separate ascending trendline support at $0.00000783. If sellers remain in control, Shiba Inu could extend the downtrend to retest the descending trendline it broke out of, currently around $0.0000076.

It could also drop to the January 19 lows of $0.00000745. Notably, this aligns with a recent analysis that highlights a bearish continuation pattern for SHIB.

However, Shiba Inu could embark on a recovery push if it breaks above $0.00000815. A reclaim of the support would pave the way for a climb to the $0.0000083 resistance level and, subsequently, to higher zones if momentum sustains.

Broader Market Trend a Crucial Factor

Despite ranking as the second-largest meme coin by market cap, Shiba Inu remains a highly speculative asset, backed fully by its loyal community. This leaves its price action largely dependent on the broader crypto market trend.

Despite the bearishness, an uptrend in Bitcoin and other major altcoins could quickly trigger a market reset. Currently, the crypto market is highly volatile amid pressure from macroeconomic factors, making price direction difficult to predict.