After three months of sustained price declines, Shiba Inu (SHIB) has entered a critical phase that’s testing investor sentiment and market resilience. Nearly 60% of current SHIB holders are now sitting on unrealized losses as the meme coin trades near its lowest levels in recent months. Yet, amid the pessimism, a powerful signal has emerged: whale activity has surged over 300%, suggesting that large investors may be positioning themselves for a potential reversal.
While SHIB managed a modest 2% gain in the past 24 hours, it remains down more than 22% over the last 30 days, currently hovering around $0.000013—a three-month low. This prolonged downtrend has left many retail investors discouraged, but on-chain data reveals a different story unfolding behind the scenes.
👉 Discover what whale movements could mean for SHIB’s next big move.
The Downtrend in Focus: A Descending Triangle Pattern
From a technical standpoint, Shiba Inu has been trading within a descending triangle pattern, a bearish formation typically indicating weakening bullish momentum and increasing selling pressure. After peaking at $0.000031 in early December—a surge partly fueled by broader crypto market optimism following global political developments—SHIB failed to sustain momentum and began a steady decline.
The price structure since then has shown a series of lower highs, with support holding relatively flat around $0.000013. This dynamic suggests that while sellers remain in control, buyers are starting to defend this level more aggressively.
If the current support holds and volume increases, a breakout above the descending resistance could trigger a bullish reversal. However, a breakdown below $0.000013 could open the door to further downside, potentially toward $0.000010.
On-Chain Data Reveals Hidden Strength
Despite the bleak price action, on-chain metrics suggest growing institutional or high-net-worth interest in SHIB. According to blockchain analytics, whale wallets—those holding at least 10 million SHIB—have increased their activity by over 300% in recent days.
This surge includes large transfers between wallets, accumulation patterns, and increased exchange inflows/outflows typically associated with strategic positioning. Historically, such whale accumulation phases have often preceded significant price movements—especially after extended corrections.
Moreover, close to 60% of SHIB investors are currently underwater, meaning they bought at higher prices and are now holding losses. While this might seem negative, it also creates a scenario where future buying pressure could be amplified once confidence returns and the market shifts sentiment from fear to greed.
Technical Indicators Flash Early Reversal Signals
Several key technical indicators are beginning to show signs of stabilization—and possibly recovery.
RSI Shows Recovery from Oversold Levels
The Relative Strength Index (RSI) on the daily SHIB/USDT chart has climbed from a low of 31 last week—deep in oversold territory—to its current level of 40. While not yet in bullish territory (above 50), this upward momentum suggests that selling pressure is easing and buying interest is returning.
MACD Hints at Momentum Shift
The Moving Average Convergence Divergence (MACD) indicator is also showing promising signs. Although still in negative territory, both the MACD line and signal line are trending upward. The histogram bars have transitioned from deep red to lighter shades and even brief green flashes—indicating that bearish momentum is slowing and a crossover could be on the horizon.
These technical developments are particularly significant given they occurred just days after one of the most severe crypto market downturns of the year, which saw over $1.5 billion in liquidations across derivatives markets.
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Has SHIB Found Its Bottom?
The big question now is whether $0.000013 marks the bottom for Shiba Inu.
There are compelling arguments on both sides:
- Bullish Case: Whale accumulation, oversold RSI, improving MACD, and strong support at $0.000013 suggest that the worst may be over. If broader market conditions stabilize and Bitcoin regains strength above $60,000, SHIB could see a sharp corrective rally.
- Bearish Risk: Until there's a confirmed breakout above the descending trendline with strong volume, the path of least resistance remains downward. Continued macroeconomic uncertainty, regulatory scrutiny on meme coins, or another market-wide sell-off could push SHIB lower.
Still, many analysts believe that SHIB is approaching a high-reward entry zone, especially for long-term investors who view this as a buying opportunity amid fear-driven selling.
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Frequently Asked Questions (FAQ)
Is Shiba Inu a good investment right now?
While past performance doesn’t guarantee future results, current on-chain data and technical indicators suggest that Shiba Inu may be nearing a potential turnaround point. With over 60% of investors in the red and whales accumulating, some see this as a high-conviction buying opportunity—but only for those with risk tolerance and a long-term horizon.
What causes whale activity to increase in SHIB?
Whale activity often increases during periods of extreme market fear or undervaluation. Large investors may buy the dip when retail sentiment is negative, anticipating future rallies. The recent 300% spike in whale transactions suggests strategic accumulation ahead of a possible rebound.
Can SHIB rebound to $0.0001?
Reaching $0.0001 would require a roughly 650% increase from current levels. While ambitious, such a move isn’t unprecedented in crypto markets during bull runs. It would depend on broader market recovery, increased utility for the SHIB ecosystem (like Shibarium adoption), and sustained investor demand.
How does the descending triangle affect SHIB’s price?
A descending triangle usually signals bearish continuation, but if price holds support and breaks upward with volume, it can lead to a strong bullish breakout. Traders watch this pattern closely for breakout or breakdown signals.
What are the key support and resistance levels for SHIB?
- Support: $0.000013 (current floor)
- Stronger Support: $0.000010 (psychological level)
- Resistance: $0.000018 (recent swing high)
- Next Target: $0.000025 if breakout confirms
Should I buy SHIB now or wait?
This depends on your strategy. Aggressive investors may start scaling in at current levels given whale activity and oversold conditions. Conservative investors might wait for a confirmed technical breakout above $0.000018 with rising volume before entering.
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Final Thoughts: Patience Meets Opportunity
Shiba Inu remains one of the most watched meme coins in the crypto space—not just for its community-driven origins, but for its ability to capture market sentiment during volatile times.
While nearly 60% of holders face losses today, history shows that such moments often precede major turning points. With whales stepping in, technical indicators stabilizing, and sentiment at rock bottom, SHIB may be laying the groundwork for a comeback.
For informed investors, this phase offers not just risk—but opportunity. Whether SHIB is truly bottoming remains to be seen, but the signals are worth watching closely.
As always, conduct your own research and consider diversifying your portfolio before making any investment decisions in highly volatile assets like meme coins.