TLDR
- SHIB is trading above the key $0.00001413 demand zone following rejection from $0.00001764
- Technical analysis shows a falling wedge pattern that could lead to a 39% breakout toward $0.00001993
- Stochastic RSI approaches oversold territory, historically preceding price recoveries
- Whale wallets holding at least 1 billion tokens have decreased from 10,232 to 10,205
- Rising exchange inflows contrast with declining active addresses and network activity
Shiba Inu (SHIB) is currently trading just above the $0.00001413 level, which has historically proven to be a strong demand zone. The price pulled back following a rejection from the recent local high at $0.00001764, causing some concern among traders. However, the price action continues to display a bullish structure for now.
The $0.00001413 level has served as a reliable support in past cycles, often triggering buyer interest when reached. This historical behavior suggests the possibility of a bounce from current levels.
Technical analysis reveals a falling wedge pattern on the 4-hour chart, formed by two converging downward-sloping trendlines extending from the May 11 peak. This pattern typically indicates weakening bearish momentum and often precedes an upside breakout.
If SHIB confirms a breakout above the wedge’s resistance near $0.00001484, the price could potentially rally by approximately 39% from its current $0.00001433 level. This would put SHIB on track to reach the $0.00001993 mark.
The stochastic Relative Strength Index (RSI) adds weight to the bullish outlook. As of the latest reading, the RSI is approaching an oversold region, which typically signals an imminent price recovery. In past instances, deeply oversold stochastic RSI levels have preceded upward price movements, especially when coinciding with solid support zones.
Conflicting On-Chain Metrics
Despite the promising technical indicators, network data presents a somewhat different picture. According to CryptoQuant, active addresses have steadily declined since May 11, dropping from over 5,000 to approximately 3,200. This reduction in active wallets often indicates fading demand or decreasing retail participation in the network.
Interestingly, this bearish network sentiment is counterbalanced by a sharp increase in exchange inflows over the past 24 hours. While exchange inflows aren’t inherently bullish, in the current context—paired with the demand zone and RSI reading—they may suggest accumulation rather than selling pressure.
The current situation represents a tug-of-war between bullish technical signals and bearish network activity. For the moment, price action appears more responsive to the positive technical developments.
The number of Shiba Inu whales—defined as wallets holding at least 1 billion tokens—has decreased to 10,205, down from 10,232 just nine days ago. Although the decline seems minor, it continues a broader pattern of gradual reduction in large-holder participation.
According to data from Santiment, these large addresses play a crucial role in determining SHIB’s price direction through high-volume transactions, often signaling shifts in market sentiment. The overall trend in whale count has remained negative despite occasional upticks.
As long as SHIB maintains support at the $0.00001413 level, the path of least resistance may continue to favor upside movement. The 50-period Exponential Moving Average (EMA) currently sits just above the price, near $0.00001484, acting as immediate resistance.
Volume has declined during the wedge formation, which aligns with typical behavior for this pattern. Meanwhile, the RSI has moved from oversold territory toward the neutral 50 line, now reading at 44.25, suggesting early bullish momentum.
The convergence of technical indicators at the current demand zone gives SHIB a realistic chance of recovery in the near term, provided the $0.00001413 support continues to hold.
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