- SHIB lost momentum after rejection near the key $0.00000500 resistance level.
- Rising exchange reserves and long liquidations increase short-term downside risks.
- Bulls must reclaim the 50-day moving average to restore bullish momentum.
Shiba Inu entered August with renewed optimism after a strong recovery attracted fresh buying interest. Many traders expected another push toward higher resistance levels. That optimism faded quickly after sellers rejected the latest breakout attempt. Market sentiment changed within days as technical weakness returned across several indicators. Price now trades near a critical area where buyers must defend support. Another failure could increase downside pressure and extend the current correction.
SHIB Faces Strong Resistance as Selling Pressure Returns
Shiba Inu failed to remain above the crucial $0.00000500 resistance level. Buyers briefly pushed prices beyond that barrier before sellers stepped back into control. The rejection happened near the 50-day moving average. That technical level strengthened resistance and stopped further gains. Recent daily candles now display a sequence of lower highs. That pattern often signals fading bullish momentum. Buyers have lost control of the short-term trend.
Sellers continue building confidence after every unsuccessful recovery attempt. The broader chart also reflects increasing weakness. SHIB dropped below the rising 20-day moving average. The 50-day moving average continues acting as a ceiling. The 100-day and 200-day moving averages remain well above current price levels. Those longer-term barriers continue supporting the broader bearish outlook. Momentum indicators also favor caution. The Relative Strength Index slipped toward 53 after leaving overbought territory.
Buying strength has weakened without reaching oversold conditions. That reading leaves enough room for another decline before stronger bargain hunting appears. Liquidation data tells a similar story. Long liquidations reached about $176,000 during the past day. Short liquidations stayed below $13,000. That wide gap shows leveraged bulls absorbed the largest losses after the failed breakout. Such conditions often reduce confidence among short-term traders.
On-Chain Activity Suggests Caution Still Makes Sense
On-chain data presents a mixed picture. Spot market flows remain positive across shorter timeframes. Those inflows show some investors continue accumulating SHIB during weakness. Futures activity, however, paints a different picture. Negative futures flows suggest leveraged traders have reduced exposure while waiting for stronger confirmation. Exchange data also raises fresh concerns. Exchange reserves increased slightly during the past day.
Overall exchange inflows and netflows also moved higher. More SHIB becoming available on trading platforms could increase selling pressure if holders decide to lock in profits. Technical support now becomes the main focus. The first important level stands near $0.00000465 around the rising 20-day moving average. Losing that area would expose the recent breakout zone near $0.00000445.
Another breakdown below that support could encourage additional selling. Recovery remains possible, although buyers still face difficult challenges. Bulls must reclaim the 50-day moving average before confidence returns. Stronger trading volume would also improve the outlook. Until those conditions appear, sellers continue holding the advantage and bearish signals remain difficult to ignore.