Shiba Inu (SHIB), one of the top meme-based cryptocurrencies, is sending mixed signals to traders after a sharp downturn and a brewing technical setup that hints at a possible bullish reversal.
After sliding to a 7-day low and losing over 15% in value, Shiba Inu is now hovering above a crucial support zone. While bearish pressure remains, several on-chain and technical indicators suggest that a potential bounce may be taking shape, prompting traders to reassess SHIB’s short-term outlook.
SHIB Holds Crucial Support as Bears Lose Momentum
Shiba Inu’s price recently touched a weekly low of $0.00001157, shedding nearly 15% over the past seven days, amid broader market weakness and geopolitical tension. The pullback, largely driven by Bitcoin’s volatility and cautious investor sentiment, has led SHIB to test a key support zone at $0.0000102—a level it hasn’t touched since April.
Shiba Inu (SHIB) was trading at around $0.00001158 at press time. Source: Brave New Coin
Despite the current slump, technical indicators are beginning to paint a different picture. “SHIB is slowly forming a bullish double-bottom pattern,” noted a TradingView analyst, referring to the classic W-shaped setup that often precedes price recoveries.
The pattern’s lower base is seen around $0.00001030, while the neckline sits at approximately $0.00001765. If this structure completes, a breakout toward the neckline could mean a 70% upside from current levels.
Oversold Indicators Hint at Reversal Potential
Momentum indicators suggest the bearish grip may be loosening. The Relative Strength Index (RSI) on the daily chart has dropped near 35.7, inching toward oversold territory. This typically suggests that selling may be overextended and a price rebound could be on the horizon—especially if market sentiment shifts positively.
The RSI has just rebounded from the oversold level on Shiba Inu’s four-hour chart, suggesting a potential bullish reversal ahead. Source: jcwhite88 on TradingView
In parallel, the Elder-Ray Index, which measures the strength of buyers versus sellers, currently sits below zero at -0.0000011, signaling bearish pressure. However, a shift upward would support the case for renewed buyer strength. “While current conditions reflect cautious neutrality, the proximity to oversold levels offers room for bullish divergence,” said crypto analyst Maxwell Mutuma.
Falling Open Interest Could Fuel a Breakout
Another subtle yet important signal comes from Shiba Inu’s futures open interest, which has fallen dramatically from $272 million in April to $134 million now—its lowest in two months. This decline indicates reduced speculative activity and lower investor positioning, which may sound negative on the surface.
Yet historically, sharp price breakouts often occur after a drop in open interest, as markets enter a phase of reset and buildup. “Low open interest, combined with a rising funding rate, may act as a contrarian bullish indicator,” commented a report from CoinGlass.
This comes after the recent hike in weighted funding rates, which means investors are becoming more optimistic about SHIB’s future performance.
SHIB Faces Resistance at $0.00001189
Any meaningful rebound for SHIB will need it to overcome the stiff resistance level of $0.00001189, which has beaten back several intraday attempts at a breakout. A clean break above this barrier, provided there is decent volume, would open the road to $0.0000122 in the near term.
Shiba Inu (SHIB) price must break the $0.00001189 resistance to revive the bullish momentum. Source: WhatComes21 on TradingView
Conversely, a drop below the $0.0000102 support would pull SHIB down even lower to $0.00000939 or even as low as $0.00000800, making the bullish outlook invalid.
Burn Rate Stalls but Long-Term Outlook Stays Hopeful
SHIB’s burn mechanism, a deflationary feature aimed at reducing the circulating supply, has shown signs of fatigue. Shibburn statistics reveal that only 19 million tokens were burned in the past 24 hours—much lower than the previous highs.
Shiba Inu’s potential upside targets are $0.0000135, $0.00001567, and $0.00001700 over the long term. Source: EhsanZeydabadi on TradingView
Despite this, over 410 trillion SHIB have been burned to date, a mark of long-term community commitment. CoinCodex predictions remain bullish, with SHIB predicted to be between $0.00001701 and $0.00001947 in December 2025, representing a potential 60% rise from current levels.
Final Thoughts: Is a Turnaround Imminent for SHIB?
The current price action of Shiba Inu demonstrates a market in caution looking for direction. With indicators moving towards oversold regions, falling open interest, and the possibility of a double-bottom formation, traders are keeping a close eye on important levels.
If bulls recover strength and reaffirm the breakout above resistance, SHIB could soon be looking at a colossal bounce back—but the road ahead is murky until key technical resistances are broken.
For the time being, SHIB is at a technical juncture, poised for the next big move.
