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- SHIB is testing a major long-term support level near $0.00000600.
- Derivatives activity is rising, signaling a potential big price move.
- A breakout above $0.000010 could confirm a short-term recovery.
Shiba Inu is once again at a make-or-break level. Trading near $0.000006059, the meme coin remains deep in a prolonged downtrend, sitting roughly 93% below its October 2021 peak. Despite the steep decline, a mix of technical signals and derivatives activity is beginning to hint at a potential shift in momentum.
Descending Channel Keeps Pressure on Price
Since its March 2024 high, SHIB has moved within a clear downward channel, consistently failing to break above resistance. Each rally attempt has been capped, reinforcing bearish control. Now, the token is hovering near the lower boundary of that channel—an area that has historically triggered short-term rebounds.
Beneath this structure lies a longer-term horizontal support zone, which has held firm through previous market cycles, including corrections in 2021 and 2023. The fact that this level remains intact, even amid sustained selling pressure, is being closely watched by analysts as a possible base for recovery.
Derivatives Spike Signals Rising Speculation
Recent derivatives data shows a noticeable uptick in activity. Open interest climbed nearly 8% to around $32.6 million, while trading volume in SHIB-linked contracts surged sharply. This increase suggests traders are positioning for a larger move.
However, sentiment remains mixed. The long-to-short ratio sits slightly below 1, indicating that bearish bets still marginally outweigh bullish ones. At the same time, short liquidations recently outpaced longs, hinting at growing pressure on downside positions.
In the spot market, trading volume remains relatively subdued, suggesting that much of the current action is driven by leveraged traders rather than long-term investors.
Key Levels and Bullish Scenarios
Analysts point to $0.00000600 as a critical support level. Holding above it could allow SHIB to stabilize and potentially trigger a relief rally. A move toward $0.000010—seen as both a technical midpoint and psychological barrier—would require roughly a 65% gain from current levels.
More ambitious projections place SHIB back near $0.000070, though such a move would depend heavily on renewed demand and stronger market sentiment.
Also Read: Shiba Inu Drops 93% — Is SHIB Headed for More Pain in 2026?
On-chain data offers some support for a bullish case. Over 500 billion SHIB tokens have recently moved off exchanges, often interpreted as accumulation. Still, broader indicators, including negative capital flow metrics, suggest large investors remain cautious.
Shiba Inu’s price action remains fragile, but not without signs of life. Strong support levels, rising derivatives activity, and token outflows are creating a setup that could favor a rebound. However, until key resistance levels are reclaimed and broader sentiment improves, the risk of further downside cannot be ruled out.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
