Shiba Inu (SHIB) Rebounds 5%: Is a Bullish Breakout on the Horizon?

Getting your Trinity Audio player ready...

Shiba Inu (SHIB), the largest dog-themed memecoin on the Ethereum (ETH) network, may have finally found its correction bottom after a two-month-long bearish phase. With a fully diluted valuation of approximately $7.4 billion and a daily trading volume averaging $120 million, SHIB has rebounded by 5% in the past week. As of Wednesday, March 19, 2025, during the mid-London trading session, SHIB is trading around $0.0000126.

Market Sentiment and Key Catalysts

SHIB’s decline in recent months has been attributed to weak demand for memecoins and macroeconomic uncertainties stemming from U.S.-led tariff wars. However, renewed optimism surrounding Bitcoin (BTC), fueled by a rally in gold prices, has sparked increased whale activity in the SHIB network. Data from IntoTheBlock shows that transactions exceeding $100,000 have risen to 67, signaling growing investor interest.

Technical Analysis: Support Holds Firm

From a technical perspective, SHIB has been testing a crucial support range between $0.00001 and $0.000013. This zone has historically acted as a strong price floor, aligning with Ethereum’s price movements, which are anticipated to recover soon.

However, failure to maintain this support level could drive SHIB lower toward $0.0000078, invalidating bullish projections. On the flip side, a sustained breakout above $0.000014 could pave the way for a parabolic uptrend in the coming months.

Strengthening Fundamentals

Beyond its speculative roots, Shiba Inu has evolved into a utility-driven altcoin. The launch of the Shibarium layer-2 scaling solution and ShibaSwap (BONE) has reinforced its ecosystem. With total value locked (TVL) at around $2 million and $11 million respectively, these projects contribute to SHIB’s burn rate and long-term viability.

Despite its progress, SHIB faces stiff competition from emerging memecoins boasting active developer communities and strong online presence. To maintain its dominance, the Shiba Inu ecosystem must continue expanding its use cases and adoption.

Also Read: Shiba Inu’s Exchange Reserves Hit Record Lows: Is SHIB Losing Its Memecoin Dominance?

With growing whale transactions, key support levels holding, and a strengthening ecosystem, SHIB appears poised for a potential rebound. However, macroeconomic conditions and market sentiment will play a crucial role in determining its trajectory in the coming weeks.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.