SHIB Technical Analysis: Descending Channel Holds As Buyers Face Resistance

Source: CoinEdition Original Title: Shiba Inu Price Prediction: Downtrend Holds As Buyers Struggle To Reclaim Control Original Link:

Market Structure

Shiba Inu price today trades near $0.00000716 as sellers continue to dictate structure heading into December 28. Price remains trapped inside a descending channel, with repeated failures near trend resistance keeping upside attempts contained.

December has extended the broader bearish picture. SHIB opened the month at $0.000008385 and is down 14.15%, while year-to-date losses sit near 65%. Seasonal weakness has added pressure, with December now shaping up to be the fourth negative close in the past five years.

Descending Channel Analysis

The daily chart remains the clearest signal. SHIB has respected a downward-sloping channel since early October, producing lower highs and shallow relief bounces. Each rally into the upper boundary has been met with renewed selling, reinforcing the trend rather than challenging it.

Price currently sits near the lower half of the channel, where previous bounces have formed but failed to sustain. The Supertrend remains red near $0.00000818, confirming that trend control has not shifted. Parabolic SAR dots continue to print above price, showing sellers remain positioned for continuation rather than exhaustion.

This is not a breakdown phase, but it is not accumulation either. The structure reflects controlled downside rather than capitulation.

Support Levels and Momentum

SHIB continues to defend the $0.00000700 to $0.00000710 zone, an area that has repeatedly absorbed sell pressure throughout the second half of December. That level aligns with the lower channel boundary and recent liquidity sweeps, making it the most important short-term support.

Buyers have managed to prevent a clean breakdown. However, each bounce from support has been shallow and short-lived. The lack of higher lows signals that buyers are reactive, not proactive.

A daily close below $0.00000700 would expose $0.00000650 quickly. Below that, the next demand pocket sits near $0.00000600, where prior consolidation formed earlier this year.

Intraday Price Dynamics

Lower timeframes reflect hesitation rather than recovery. On the 1-hour chart, SHIB has compressed into a narrow band between $0.00000710 and $0.00000725. Volatility has faded, and momentum indicators remain flat.

RSI holds near 50, signaling balance rather than strength. MACD continues to hover near the zero line, showing no expansion in either direction. These conditions often precede a move, but they do not signal direction on their own.

Without a decisive push above intraday resistance, consolidation remains a pause inside a bearish trend.

Market Flows and Positioning

Spot Flow Analysis

Spot flow data continues to work against upside attempts. While the latest session showed a modest $562,000 net inflow, the broader pattern across recent weeks remains dominated by outflows.

Capital has consistently moved off exchanges during rallies rather than into them, a sign that participants are using strength to reduce exposure. Until that behavior shifts, rebounds lack structural backing.

Trader Positioning

Derivative data reflects a market without aggressive leverage. Top-trader accounts show 52.01% long versus 47.99% short exposure, producing a long-to-short ratio of 1.08.

This positioning suggests mild optimism, but not enough to force a trend reversal. There is no clear leverage imbalance, which reduces the likelihood of sharp liquidation-driven moves. Instead, price remains prone to slow grinding moves dictated by spot activity.

Price Catalysts and Outlook

Burn activity produced large percentage figures but minimal real impact. Despite isolated spikes, total supply reduction remains negligible relative to the circulating supply, which still exceeds 580 trillion tokens.

Price action reflects that reality. The market has largely ignored burn headlines, focusing instead on trend structure, support integrity, and capital flows.

Technical Scenarios

SHIB remains technically weak but not broken.

Bullish case: A daily close above $0.00000760 followed by a reclaim of $0.00000820 would break descending resistance and open room toward $0.00000900.

Bearish case: A confirmed close below $0.00000700 would signal continuation, exposing $0.00000650 first and $0.00000600 if selling accelerates.