$SHIB Shiba Inu (SHIB) has fallen to a critical support level this week, but technical indicators and increasing whale activity suggest a bullish breakout could be on the horizon.
$SHIB is currently trading at $0.0000115, slightly above this weekโs low of $0.000010. It remains 35% below its May peak and 65% below Novemberโs high. This decline mirrors the broader altcoin market, as the market cap of cryptocurrencies excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins has dropped from $947 billion in November to $583 billion.
The token has faced challenges, including a declining Shibarium ecosystem, increased whale sell-offs, and competition from Solana-based meme coins like Fartcoin and Dogwifhat. Data from DeFi Llama reveals that Shibarium's total value locked (TVL) has decreased by 20% in the last 30 days, now sitting at $2.58 million. Major ecosystem dApps like ShibaSwap, WoofSwap, and ChewySwap have also seen asset outflows. Compared to newer chains like Sui, Sei, and Unichain, Shibariumโs TVL remains modest.
However, renewed whale buying indicates potential upside for SHIB after prolonged sell-offs.
๐น Technical Analysis
SHIBโs daily chart shows a recovery from Mondayโs low of $0.00000997 to its current level of $0.00001135. This weekโs low aligns with key support levels seen in April this year and August 2024, forming a double-bottom pattern with a neckline at $0.00001755โa strongly bullish technical signal.
The Relative Strength Index (RSI) has also improved, rising from an oversold level of 28 to 40, suggesting growing momentum.
If SHIB sustains its upward movement, it could climb to the neckline at $0.00001755, representing a 55% potential gain from current levels. Conversely, a break below the critical support at $0.0000099 would invalidate the bullish scenario and signal further downside risks.
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