The price of Shiba Inu has dropped to a critical support level this week, but technical indicators and whale accumulation suggest the possibility of a bullish rise.

Shiba Inu ($SHIB ) was trading at $0.0000115 on Saturday, just a few points away from its lowest level this week at $0.000010. The price is still 35% lower than its peak in May and 65% lower than its peak in November.

The collapse of Shiba Inu $SHIB

With the performance of most alternative cryptocurrencies, the total market capitalization of all cryptocurrencies, except for Bitcoin (BTC), Ethereum (ETH), and stablecoins, has dropped from $947 billion in November to $583 billion today.

Shiba Inu $SHIB has faced several internal challenges, including the deterioration of the Shibarium ecosystem, increased whale selling, and competition from meme coins like Solana's Fart Coin and Dogewhat.

Data from DeFi Llama shows that the total value locked in #Shibarium has decreased by 20% over the past thirty days, reaching $2.58 million. Most decentralized applications in the ecosystem, such as Shiba,,Swap, Woof,,Swap, and Chewy,,Swap, have lost assets over the past thirty days. Their TVL value is much smaller than many newer chains like Sui, Sei, and Unic,hain.

However, there are some reasons that may cause the price #SHİB to rise soon. First, after months of selling, there are indications that whales have started buying it. Santi,,ment data shows that cryptocurrency holders valued between 1 million and 10 million tokens have increased their positions to 2.03 trillion from the lowest level recorded last month at 2 trillion.

The other reason is that Shiba Inu has become relatively cheap, as the MVRV ratio has dropped below 1 - a sign that it is undervalued, as the market price is lower than its realized value.

SHIB On-Chain Metrics

Technical Analysis of Shiba Inu Price

SHIB Price Chart

The daily chart shows that the price of SHIB hit its low at $0.00000997 on Monday, then rebounded to $0.00001135. Its lowest level this week is the lowest volatility it experienced in April of this year and August 2024.

It has formed a double bottom pattern, with the neckline at $0.00001755. The double bottom is a strong bullish signal in technical analysis. Additionally, the Relative Strength Index has moved from an oversold level of 28 to 40.

The price is likely to rebound, possibly reaching the neckline at $0.00001755, a 55% increase from its current level. However, a drop below the key support level of $0.0000099 would invalidate the bullish outlook and indicate further downside risks. #NODEBinanceTGE #USCorePCEMay #BTC110KToday?