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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.