TLDR
- SHIB currently trades at $0.00001433, just above critical $0.00001413 support level
- A falling wedge pattern has formed, hinting at possible 39% rally toward $0.00001993
- Stochastic RSI nearing oversold levels, often a precursor to price rebounds
- Exchange inflows increased over past 24 hours despite declining network activity
- Large holders (whales) continue to decrease, dropping from 10,232 to 10,205 in nine days
Shiba Inu’s price action has caught the attention of crypto traders as it hovers just above a critical support level. SHIB is currently trading at $0.00001433, maintaining position above the $0.00001413 mark that has historically acted as a strong demand zone.
The popular meme token recently faced rejection after approaching $0.00001764, causing a pullback that tested this key support area. Despite this setback, chart patterns suggest the token may be preparing for an upward move.
Technical analysts have identified a falling wedge formation on SHIB’s 4-hour chart. This pattern, characterized by converging downward trendlines, typically signals a weakening downtrend and often precedes bullish reversals.
If SHIB breaks above the wedge’s upper boundary near $0.00001484, traders project a potential 39% price increase. This would push the token toward the $0.00001993 target, representing a substantial gain from current levels.
The 50-period Exponential Moving Average currently sits at $0.00001484, serving as immediate resistance. This level coincides with the wedge’s upper boundary, making it a critical price point to watch.
Volume has steadily decreased during the wedge formation, which aligns with the pattern’s typical behavior before a breakout occurs. This declining volume often precedes increased buying pressure when the breakout eventually happens.
Market Signals At Odds
SHIB’s stochastic Relative Strength Index (RSI) provides another bullish signal. The indicator has moved from deeply oversold territory toward the neutral 50 level, currently reading 44.25. This movement suggests building momentum that could support an upward price movement.
In previous market cycles, similar RSI conditions at established support zones have preceded recoveries. This technical convergence gives weight to the case for a potential reversal from current price levels.
However, on-chain metrics tell a more complex story. Data from CryptoQuant shows active addresses have been declining since May 11th, dropping from over 5,000 to approximately 3,200. This reduction typically indicates decreasing network usage and waning retail interest.
The decline in active addresses creates a bearish undertone that contrasts with the bullish technical setup. This divergence between chart patterns and network activity presents traders with conflicting signals to interpret.
Interestingly, exchange inflows have spiked over the past 24 hours. While increased exchange deposits often suggest selling pressure, in the current context—paired with the technical support zone—they might indicate strategic positioning before a price move.
Whale Behavior Raises Questions
Perhaps most telling is the behavior of large SHIB holders. The number of wallets holding at least 1 billion tokens has decreased to 10,205, down from 10,232 just nine days ago.
While this decline appears minimal, it continues a pattern of gradual reduction in major holder participation. This slow but steady exodus of whales could reflect diminishing confidence in SHIB’s long-term prospects.
According to Santiment data, these large addresses can substantially impact price direction through their high-volume transactions. The ongoing reduction in whale count has remained a constant despite occasional short-term increases.
The current market setup represents a struggle between positive technical indicators and weakening fundamental metrics. For now, price action seems more responsive to technical factors than on-chain data.
As long as SHIB maintains its position above the $0.00001413 support zone, the technical outlook suggests the path of least resistance remains to the upside. The RSI’s movement from oversold conditions toward the neutral zone further supports this view.
The combination of the falling wedge pattern, historical support level, and improving momentum indicators creates a compelling case for a potential recovery, despite the concerning decline in whale counts and network activity.
