Shiba Inu (SHIB), one of the most prominent meme coins by market capitalization, is displaying early signs of a potential bullish reversal despite recent price weakness. After a notable pullback from its recent highs, market analysts are now focusing their attention on the critical $0.000016 resistance level. On-chain data, technical indicators, and evolving price structures suggest that SHIB could be nearing a turning point—one that may pave the way for a meaningful recovery if key support levels hold.
SHIB Holds Crucial Support Amid Market Correction
Currently trading around $0.000014, Shiba Inu has seen a 4–5% decline over the past 24 hours, mirroring broader market corrections across the crypto landscape. Over the last week, SHIB dropped nearly 20% after failing to sustain momentum above $0.00001740. Despite this downward pressure, the asset has maintained its footing above a vital support zone near $0.00001160.
Technical analysis suggests that SHIB must reclaim and hold above key moving averages—particularly the 200-day Exponential Moving Average (EMA)—to avoid further bearish momentum. A failure to do so could see prices test lower supports between $0.00001300 and $0.00001280. However, many analysts believe the worst of the selling pressure may be behind us.
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“Shiba Inu appears to be transitioning from a corrective phase into a potential impulsive bullish move,” said Nikola Lazic, a technical analyst tracking cryptocurrency markets. According to Lazic, SHIB has completed a complex W-X-Y-X-Z correction pattern—a multi-stage consolidation often seen before strong directional moves. If price holds firm above $0.00001160, the stage could be set for a new upward wave.
On-Chain Data Hints at a Local Bottom
On-chain metrics are increasingly pointing toward a possible accumulation phase for SHIB. The Market Value to Realized Value (MVRV) ratio—a key indicator used to identify undervalued or overvalued conditions—has dipped to levels historically associated with local price bottoms.
In Q3 2024, a similar MVRV reading preceded a 128% rally in SHIB’s value over the following weeks. While past performance doesn’t guarantee future results, such patterns attract attention from contrarian investors and smart money participants.
Additionally, transaction volumes in loss have declined sharply—from over 5 trillion SHIB tokens sold at a loss just weeks ago to under 600 billion today. This significant drop indicates that weak hands may have already exited the market, reducing immediate selling pressure.
“Capitulation appears to be subsiding,” noted analysts at CoinGape. “With fewer holders selling at a loss, the path may be clearing for institutional and long-term investors to step in.”
This shift in sentiment aligns with growing accumulation signals, suggesting that large players might be quietly building positions ahead of a potential breakout.
Technical Indicators Signal Potential Reversal
Multiple technical indicators are aligning to support a bullish outlook for Shiba Inu. The Chaikin Money Flow (CMF) is trending upward even as price declines—a classic sign of accumulation by informed investors. This divergence suggests that while retail sentiment remains cautious, stronger hands are absorbing supply.
Meanwhile, the Average Directional Index (ADX) shows weakening bearish momentum, indicating that downward pressure is losing steam. When ADX falls below 25 while price stabilizes, it often precedes trend reversals in volatile assets like SHIB.
Chart patterns also offer encouragement. SHIB recently formed a hammer candlestick near the 21-day EMA at $0.00001402—a bullish reversal signal when confirmed by follow-through buying. More notably, an ascending triangle pattern is developing on the daily chart.
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An ascending triangle is widely regarded as a bullish continuation pattern. If SHIB breaks above the $0.000016 resistance with strong volume, the measured move target could reach $0.000022 or higher in the coming weeks.
“Traders should monitor whether SHIB can reclaim $0.00001430,” advised CoinEdition’s market report. “A successful retest and hold of this level would confirm renewed buying interest and could trigger a broader rally.”
Short-Term Risks Remain
Despite growing optimism, short-term risks have not fully dissipated. SHIB recently broke below its ascending trendline on the 4-hour chart and now faces resistance near $0.00001510. Momentum oscillators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain in bearish territory on lower timeframes, suggesting caution is still warranted.
A failure to defend the $0.00001380 support could open the door to a test of the $0.00001280–$0.00001200 range. Additionally, meme coins like SHIB are highly sensitive to broader market sentiment—especially movements in Bitcoin and Ethereum.
When major cryptocurrencies enter risk-off phases, speculative assets often experience amplified volatility and drawdowns. Therefore, any prolonged weakness in BTC or ETH could delay SHIB’s recovery.
Price Outlook: A Make-or-Break Moment Approaches
The coming days will be decisive for Shiba Inu’s trajectory. All eyes are on two pivotal levels:
- Support at $0.00001380–$0.00001160
- Resistance at $0.000016
A successful bounce from support—confirmed by rising trading volume and improving technical indicators—could reignite bullish momentum and attract fresh capital inflows. Conversely, a breakdown below $0.000012 would invalidate current bullish setups and likely extend losses.
If SHIB manages to break and close above $0.000016 with conviction, analysts project the next targets at:
- $0.00001930
- $0.0002196
- And potentially $0.0246 in the medium term
Historical patterns, combined with current on-chain behavior and technical structure, suggest that Shiba Inu is at a crossroads where smart money accumulation could catalyze a new growth cycle.
Frequently Asked Questions (FAQ)
Q: What is the significance of the $0.00016 resistance level for SHIB?
A: The $0.016 level (adjusted for decimal accuracy) represents a psychological and technical barrier where previous rallies stalled. A confirmed breakout above this zone could signal strong buyer conviction and trigger algorithmic and institutional buying.
Q: Can SHIB reach $1 again?
A: No—due to its massive supply (quadrillions of tokens), SHIB cannot realistically reach $1 per token without extreme deflationary mechanisms beyond current capabilities.
Q: Is Shiba Inu a good long-term investment?
A: It depends on risk tolerance and market outlook. While SHIB has strong community support and ecosystem development (like Shibarium), it remains highly speculative compared to established cryptocurrencies.
Q: What factors influence SHIB’s price most?
A: Key drivers include Bitcoin market trends, overall meme coin sentiment, whale accumulation patterns, burn rates, and Layer-2 ecosystem adoption via Shibarium.
Q: How does token burning affect SHIB’s price?
A: Regular burns reduce circulating supply over time, increasing scarcity. Though impact is gradual due to large supply, sustained burns can support long-term price appreciation.
Q: Where should I store SHIB securely?
A: Use non-custodial wallets like Trust Wallet, MetaMask, or Ledger hardware devices to maintain full control over your private keys.
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