Bearish Pressure On Shiba Inu May Be Nearing Completion, Weekly Chart Suggests
Open interest in Shiba Inu climbed 2.1% over the past 24 hours even as spot trading volume fell 18%, sending conflicting signals about where the token is headed next.
What The Chart Is Showing
SHIB is currently trading around $0.0000056, near its historic lows, after dropping 10% in the past seven days.
That decline brought the token back down to a key support zone around $0.0000055 — a level that has cushioned price drops since the coin’s early days in 2021.
Despite repeated tests, sellers have not managed to push the price into a sustained breakdown below that area.
The broader chart structure is a contracting descending triangle that has kept a lid on SHIB since its 2021 peak. Each time the token tried to recover, it ran into the triangle’s falling upper resistance line and got turned back.
That pattern has been in place for years, and it remains the dominant force on the weekly chart.
A Wave Pattern Points To A Possible Turning Point
Analyst Aurex Finance, writing on TradingView, outlined a completed three-wave corrective structure that may signal the end of SHIB’s long decline.
The first wave took the price from a March 2024 high of $0.000045 down to $0.000010 by August 2024. A partial recovery followed, lifting SHIB to $0.000033 in December 2024, before a third wave pushed prices back toward the lower edge of the triangle, where they sit now.
SHIB Market cap currently at $3.27 billion. Chart: TradingView
According to the analysis, the three-wave decline appears to have ended right on top of a long-term support zone, creating what technical analysts call a confluence.
That overlap between the wave completion and the support level is what leads to suggest the multi-year correction could be in its final stretch.
