The Shiba Inu token has experienced significant volatility since mid-August, with the past three trading sessions showing particularly pronounced downward movement. This recent price action has brought SHIB to a pivotal technical juncture that could determine its near-term trajectory.

Market observers note that SHIB appears to be finding temporary stability around the $0.00000675 level, which coincides with the 50% Fibonacci retracement level of the established trading range between $0.00000694 and $0.00000655. This zone has previously served as both support and resistance, making its current test particularly significant for traders.

Technical analysis suggests that when asset prices consistently trade below the midpoint of an established range, the prevailing trend often continues. This makes the $0.00000675 level a critical threshold for SHIB bulls to defend if they hope to prevent further downside.

Momentum indicators currently favor the bears, with the Relative Strength Index remaining below the neutral 50 level and the Awesome Oscillator showing negative readings. These technical signals suggest that SHIB may face continued selling pressure, potentially testing the lower boundary of the demand zone at $0.00000654.

Conversely, should the current support level hold, SHIB could potentially rebound toward the supply zone between $0.00000786 and $0.00000837. A sustained move above $0.00000815 would provide technical confirmation of bullish momentum returning to the market.

On-chain data reveals significant supply barriers that could limit SHIB's upside potential. The Global In/Out of the Money model identifies two major concentration areas between $0.000008-$0.000014 and $0.000014-$0.000019 where previous buyers entered the market.

Approximately 514,140 wallet addresses hold nearly 721.23 trillion SHIB tokens within these price ranges. This concentration of holdings could create selling pressure as these positions approach breakeven levels, potentially capping any recovery attempts in the near term.