Shiba Inu Hits Key Resistance, Faces 16% Drop Risk as Bearish Signals Intensify

Shiba Inu (SHIB), a prominent meme coin, is currently facing technical resistance as bullish momentum weakens against a descending trendline. On August 11, 2025, the asset failed to break above $0.00001420, a key level that has previously acted as resistance. This rejection highlights concerns about the sustainability of upward price movements, especially with declining trading volume reinforcing the bearish bias [1]. Technical indicators suggest that SHIB is at a critical juncture, with the next immediate support level at $0.00001000 under increasing threat if selling pressure intensifies [2].

A breakdown in volume has been a consistent feature of SHIB’s recent price action, suggesting a lack of conviction among buyers. Low trading volume during key price movements has historically signaled weak follow-through on rallies, making SHIB more vulnerable to sharp corrections. The recent invalidation of a potential double-top reversal pattern further underscores the dominance of bearish forces in the current market structure [3].

From a structural standpoint, SHIB appears to be entering a tightening price range between a descending resistance and a rising trendline support near $0.00001280. This compression could lead to a breakout in either direction, though the risks are skewed toward the downside given the weak volume and recent price rejection. If the $0.00001280 level fails, the path of least resistance would be toward the critical $0.00001000 support level, which has historically acted as a psychological and technical floor [4]. A breakdown past that level could accelerate a deeper correction, wiping out much of SHIB’s recent gains.

Market analysts have highlighted the growing uncertainty around SHIB’s future. An AI-driven forecast suggests a 16% potential drop by the end of the month, pushing SHIB below $0.00001 [1]. While this remains a projection and not an actual confirmed movement, it has already contributed to increased caution among traders. On the other hand, whale activity and accumulation patterns indicate that SHIB could still find support and potentially break above $0.00001250–$0.00001300, offering a glimmer of hope for short-term buyers [3].

Broader trends in the meme coin market also weigh on SHIB’s prospects. The sector appears to be losing momentum as investors shift focus to newer, more viral projects such as Little Pepe and Fartcoin. These tokens have captured short-term interest with their novelty, making it harder for SHIB to regain lost ground [4]. As a result, SHIB is not only battling bearish technical signals but also competing with a rapidly evolving market landscape.

Traders are advised to closely monitor both key support and resistance levels and remain alert to volume changes. The ability of SHIB to hold above $0.00001000 will be a crucial determinant in whether a reversal is possible or if the downtrend continues. Given the unpredictable nature of meme coins, rapid and volatile shifts in price are always a possibility, requiring investors to maintain flexibility and caution.

Source:

[1] SHIB Price Faces Potential 16% Drop as AI Prediction Weighs

https://blockchain.news/news/20250811-shib-price-faces-potential-16-drop-as-ai-prediction-weighs

[2] Shiba Inu Under Bearish Pressure as Meme Coin Market Weakens

https://www.ainvest.com/news/shiba-inu-bearish-pressure-meme-coin-market-weakens-2508/

[3] Shiba Inu Holds Support Level Amid Whale Accumulation

https://www.ainvest.com/news/shiba-inu-holds-support-level-whale-accumulation-breakout-potential-2508/

[4] The Best Dogecoin Alternative to Buy in 2025 is Not Shiba Inu

https://www.indiatimes.com/partner/the-best-dogecoin-alternative-to-buy-in-2025-is-not-shiba-inu-shib-top-3-better-tokens-to-watch-666388.html