Since Mar 4, 2024, Shiba Inu has been consistently moving within a downward channel. Most recently, on August 5, SHIB bounced off the channel’s support and tested the resistance once again, only to be rejected. As of now, the price is inching back toward the channel's support.

Key Support Zones

Before SHIB can test the support of the channel, there is a major support zone between 0.000012 and 0.000010, which is expected to play a crucial role in preventing further declines. On the 7-day time frame, this zone has historically acted as a strong support and resistance level, providing stability to the price in both directions.

Testing Resistance: The $0.000045 Target

In the event of a breakout from the downward channel, the next major technical target is located at $0.000045, the top of the channel. However, SHIB is still facing strong resistance at the upper boundary of the channel, and it will need a significant breakout to achieve this target.

Long-Term Breakout from Downward Channel and Falling Wedge

Looking at the bigger picture, Shiba Inu recently experienced a massive breakout on the 7-day time frame, escaping a long-term downtrend. This breakout was followed by another breakout from a falling wedge pattern, which led to a strong pump of about 741%.

Strong Resistance Around $0.000004

Unfortunately, SHIB was unable to sustain its momentum beyond the $0.000004 resistance level, which has previously acted as a tough barrier. Despite breaking above it momentarily, the price was rejected once again, and SHIB is currently struggling to reclaim this level.

Future Prospects and Technical Targets

If SHIB successfully breaks out of the current channel, the long-term technical target could be between $0.000090 and $0.000100. This target is based on the breakout from the previous long-term downward channel, which has yet to fully play out. So far, the price has achieved the target from the falling wedge, but the long-term channel target remains unfulfilled.

Conclusion

In conclusion, Shiba Inu is still moving within a downward channel, testing both support and resistance levels. A breakout from this channel could push the price to $0.000045 and beyond. Long-term, the price may even hit the $0.000090 to $0.000100 range if the broader breakout trend continues. As always, traders should closely monitor the support and resistance zones for potential opportunities.

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