Shiba Inu (SHIB) Issues Scam Warning, Technicals Issue Bearish Warning

Shiba Inu (SHIB) Issues Scam Warning, Technicals Issue Bearish WarningNOIDA (CoinChapter.com)— Shiba Inu, the Ethereum of the memecoin universe, continues to face bearish pressure following the market crash at the beginning of Aug. 2024.

Though the memecoin tried to recover, bearish market sentiment negated any upside attempts by the SHIB USD pair. Now, a Shiba Inu-related social media account has warned users against scams on Telegram.

Rising Scam Concerns in the Shiba Inu Community

The Shiba Inu community has been ed to a surge in scam activities on Telegram, where fake airdrop groups have become increasingly prent. These groups, disguised as legitimate opportunities, entice users with the promise of free tokens in exchange for simple tasks.

However, the moment participants connect their wallets, they risk losing their entire crypto holdings to malicious actors.

*Tweet warning users of scams on Telegram.*The recent warning from Shibarmy Scam s underscores the growing threat posed by these fraudulent schemes. The channel specifically highlighted a Telegram group named “K9 Finance DAO News,” which falsely claimed to offer $2,000 worth of KNINE tokens to users who forward a particular post.

Despite the group’s seemingly large following, its true intent is to drain participants’ funds.

Moreover, the situation reflects a broader trend within the crypto space, where scammers exploit the popularity of platforms like Telegram to prey on unsuspecting users.

As more people seek out new opportunities following the Notcoin airdrop, the risk of falling victim to these schemes has escalated.

SHIB Faces Bearish Risks From Technical Setup

Meanwhile, the Shiba Inu token has formed a bearish technical pattern called the ‘bear flag.‘

SHIBUSD formed a bearish pattern with a 34% downside target. Source: TradingviewThe bear flag pattern appears on a cryptocurrency price chart when a brief, sharp countertrend movement—often referred to as the flag—follows a preceding downward trend. The formation typically signals a potential reversal of the countertrend.

In a bearish continuation setup, volume levels may stabilize or decrease during consolidation. During the consolidation period of a bear flag setup, the market often trends upward in response to the initial price drop, triggering FUD.

The emotional response typically results in higher-than-average trading volumes as investors and traders re-enter the market to capitalize on or mitigate the price movement’s effects.

Traders calculate the bear flag pattern’s price target by subtracting the flagpole’s length from the breakout price level. As a result, the SHIB USD price might drop to $0.000009, a 34% drop from the current price level.

SHIB Price Continues To Struggle Against Immediate Resistance

The SHIB USD exchange rate dropped nearly 3% on Aug. 13 as the token failed to rally above immediate resistance near $0.0000143. Since falling below this price level on Aug. 3, SHIB prices have failed to flip the immediate resistance.

*SHIBUSD daily price chart with RSI.*If the SHIB USD pair managed to break above the immediate resistance, the Shiba Inu token might rise to the resistance near $0.000016 before correcting.

Conversely, a downtrend from here would likely see SHIB price test the support levels near $0.0000122 and $0.0000111.

The RSI for SHIB remained neutral at 38.35, highlighting the lack of bullish momentum in the token’s price action.