Mixed Signals as Shiba Inu (SHIB) Dips Below Key Support Level

Shiba Inu (CRYPTO: SHIB) price showed mixed signals in recent market activity as technical analysts remained highly optimistic about the meme cryptocurrency's future price action, while short-term indicators suggested that bears were gaining control.

Shiba Inu experienced a minor dip of 0.4% over the past 24 hours, moving slightly lower from its intra-day high of $0.0000129. This price point was a critical juncture for the token, as it marked the mid-range level in a two-month trading pattern. The failure to hold this support level might lead some market watchers to become pessimistic.

Despite recent weakness, technical analyst Javon Marks remained strongly bullish on Shiba Inu, predicting a massive 528% surge to $0.081 in the near future.

Marks' analysis focused on SHIB's technical setup and accumulation patterns following a successful retest of a breakout level. The token soared to a seven-month high of $0.00003329 in December 2024 before pulling back to $0.0000108.

This correction, according to Marks, was part of a normal technical structure that would set the stage for a more substantial rally. A key factor supporting the bullish case was the hidden bullish divergence forming on SHIB's chart. This technical pattern usually signaled underlying market strength even when short-term indicators suggested weakness.

The divergence typically occurred when price maintained higher lows while momentum indicators formed lower lows, signaling a potential continuation of the existing trend.

On-chain data presented a more complicated picture of SHIB's market dynamics. Exchange net position change remained negative since January 2025, indicating that more tokens were leaving exchanges than entering them. This metric was often interpreted as reduced selling pressure and increased accumulation.

However, funding rate data showed rising bearish sentiment in recent days, with the rate dropping below zero. Open Interest had also fallen since April 26, suggesting weakening bullish conviction.

The mean coin age metric lacked a strong uptrend over the past month, unlike the January-March period when it showed clear network-wide accumulation.

Active address data showed a surge in early May followed by declining activity, which could represent either selling pressure or, when combined with exchange outflows, strategic accumulation.

Also, the 30-day MVRV (Market Value to Realized Value) moved into negative territory. Some analysts saw this as an early sign that selling pressure from short-term holders might be subsiding.

Token burn activity presented another positive factor for SHIB. Recent data from Shibburn showed that 2,219,043 SHIB tokens were burned in a 24-hour period, indicating a 278.42% increase in burn rate.

Over the week, an even more dramatic 313,950,965 tokens were removed from circulation, marking a 324.14% increase in the burn rate.

The burn mechanism decreased SHIB's circulating supply, which could support price appreciation when combined with steady demand.

Long-term holder behavior also presented a positive signal. The number of investors holding SHIB for over a year had steadily increased since mid-2022 and continued to rise in 2025.

At the same time, short-term traders (those holding for less than a month) decreased by 36.5%. Medium-term holders, or "cruisers," grew by 3.15%.

This shift in holder composition suggested that SHIB was maturing as an asset, with investors adopting longer time horizons rather than speculative short-term positions.

The token was currently trading within a two-month range formation, with price action suggesting that bears were gaining control in the short term.

After falling below the mid-range support at $0.0000129, SHIB appeared more likely to test range lows before attempting to challenge range highs.

Recent reports highlighted selling pressure from whale wallets, which added to the bearish short-term outlook.