SHIB Holds Critical Support Despite Market Pullback

Market analysts are now closely watching the $0.000016 resistance level as on-chain metrics and technical indicators flash a potential turning point for the asset.

Market analysts are closely watching the $0.000016 resistance level as on-chain metrics and technical indicators flash a potential turning point for the asset.

Shiba Inu (SHIB) has dropped to a critical support zone, and on-chain data suggests that the token could be setting up for a 128% rally from these levels.

Shiba Inu Drops As Broad Market Pullback Continues

Shiba Inu is currently trading hand to mouth at $0.000014, down around 4% in the past 24 hours. The token has dropped nearly 20% over the last week after failing to maintain its recent peak around $0.00001740.

SHIB must break above the parallel channel and reject the 200 EMA to avoid turning bearish; failure could send it toward $0.00001300. Source: Paper_Trader1775 on TradingView

However, analysts are not ruling out a rebound. "The structure appears to be transitioning from a corrective to an impulsive phase," said Nikola Lazic, technical analyst at CCN. According to him, SHIB has completed a complex W-X-Y-X-Z correction and may now be setting up for a new bullish wave—provided it holds above key support near $0.00001160.

"This would also complete the anticipated 128% rally from the 0.00000610 low, setting the stage for further gains toward 0.00002460 over the coming months."

Shiba Inu: MVRV Hits Levels Typically Seen At Price Bottoms

The Market Value to Realized Value (MVRV) ratio for SHIB has dropped to levels historically associated with price bottoms. In Q3 2024, a similar reading preceded a 128% rally that saw SHIB rise from $0.0000061 to $0.000014. If this pattern repeats, Shiba Inu could climb toward $0.000032 in the coming weeks.

Additionally, on-chain transaction volumes in loss have declined sharply—from nearly 5 trillion SHIB to under 600 billion—suggesting that sellers may be exhausted. "Capitulation seems to have subsided," noted analysts at CoinGape, who believe that this may reduce selling pressure and open the door for a recovery.

Shiba Inu: Chaikin Money Flow Shows Accumulation As Average Directional Index Decreases

Technical charts show SHIB forming a hammer at key support near the 21 EMA, hinting at a possible reversal if $0.00001402 holds. Notably, SHIB is forming an ascending triangle—a bullish continuation formation—with a possible breakout target of $0.000016. A breakout above that price could open the gate for further gains toward $0.000022 and beyond.

"Traders should watch for a reclaim of $0.00001430," noted CoinEdition's report. "That would confirm strength and potentially trigger a new rally phase."

However, despite these bullish signals, SHIB has broken below its ascending trendline on the 4-hour chart and now faces resistance near $0.00001510. Moreover, momentum oscillators like the RSI and MACD remain bearish on lower time frames, and they support short-term prudence.

Shiba Inu (SHIB) was trading at around $0.00001403, down 4.48% in the last 24 hours at press time. Source: Brave New Coin

The current descending triangle breakdown could push SHIB towards the $0.00001280–$0.00001200 support area in the event that the $0.00001380 support does not hold.

Bankless stated that SHIB has entered "a decisive moment."

"Shiba Inu is at a critical juncture. Can it rebound from key support, continuing the accumulation phase and setting the stage for a 128% rally to 0.000032, or will it break lower, invalidating the bullish thesis and opening the door for further losses?" the crypto outlet elaborated further.

When Bitcoin and Ethereum are weakening, meme coins like SHIB are more sensitive to widespread risk-off behavior.

"The MVRV ratio has reached levels typically seen at price bottoms, and a similar reading in Q3 2024 preceded a 128% rally that saw SHIB rise from 0.0000061 to 0.000014. If this pattern repeats