Shiba Inu 'Touches' Historical Low Again...4-Year Descending Triangle Ends, Rebound Signal ON

▲ Shiba Inu (SHIB)/ChatGPT generated image

An analysis suggests that Shiba Inu (SHIB) may have entered the final stages of its long-term bearish trend, as it retested a major long-term support zone on the weekly chart. While the descending triangle structure that has suppressed prices since the 2021 peak remains valid, recent price movements also indicate that the long-term correction phase is nearing its end.

According to The Crypto Basic on May 25 (local time), Shiba Inu dropped 10% in the last 7 days, reconfirming the key support zone around $0.00000550. This price level aligns with a long-term support line that has prevented price declines for several years since its initial movement in 2021.

TradingView analyst Aurex Finance cited the repeated defense of the support zone as one of the most important signals on the current chart. Despite the continued bearishness across the broader cryptocurrency market, selling pressure has not been able to consistently push the price below the demand zone. This was interpreted as a sign that downward pressure is easing.

However, the upper resistance trendline remains a strong barrier. All major rebound attempts since 2021 have been halted near the descending resistance line, and this structure has acted as a suppressive factor on the long-term chart. The long-term technical structure was deemed vulnerable until Shiba Inu breaks through the upper boundary.

The compression of volatility on the chart is also noteworthy. As the width of the descending triangle has narrowed over a long period, the price appears to have entered a phase preceding a significant directional move. The Crypto Basic stated that such patterns typically lead to larger directional moves when the price breaks out of the range.

Aurex Finance analyzed that Shiba Inu has completed an Elliott Wave correction labeled A, B, and C within its current downtrend. The first wave was a decline from the March 2024 high of $0.0000456 to $0.0000107 in August 2024. Subsequently, wave B created a temporary rebound but failed below the descending resistance line, and Shiba Inu rose from the August 2024 low to $0.0000334 in December 2024. Wave C again pulled the price down to the bottom of the triangle, and the current price is attempting to stabilize in that zone.

The completed A, B, C correction was suggested to have concluded at a recent low, coinciding with a higher timeframe support line. Aurex Finance believes this structure indicates that Shiba Inu's multi-year correction cycle may be in its later stages.

The first observation point for a rebound scenario is the descending trendline, currently around $0.000011. After that, the previous wave B high of $0.000033 was presented as a key price level. The analysis suggests that if Shiba Inu decisively breaks through these two levels, the market structure could change, and buying pressure could take control.

At the time of writing, Shiba Inu was trading at $0.00000563, near its historical low. Spot trading volume decreased by 20%, and open interest increased by 2.3% in the last 24 hours, sending mixed signals. With the defense of the long-term support line, shrinking trading volume, and increasing open interest occurring simultaneously, Shiba Inu's next direction depends on whether it can break through the upper resistance.

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