Shiba Inu (SHIB), one of the market’s most watched meme coins, is nearing a key technical breakout point after a prolonged consolidation phase. Trading inside a falling channel for over a month, SHIB is now testing the patience of bulls looking for signs of a potential reversal. The broader crypto market’s rebound could help fuel a breakout — if buyers step in at these levels.
Shiba Inu Price Analysis: Testing Channel Resistance
Since mid-May, Shiba Inu has been trapped in a falling channel after losing momentum at the 38.20% Fibonacci retracement level ($0.00001639). The decline has shaved 30% off SHIB’s value, with the token currently priced around $0.00001187.
Despite the pullback, SHIB continues to hold firm above key support at $0.00001100 — a level that has prevented deeper downside. This consolidation hints at growing bullish potential, especially with the daily RSI showing a minor bullish divergence and the MACD nearing a positive crossover.
If SHIB can break above the channel’s resistance line, the next target would be the 23.60% Fibonacci level at $0.00001390. A successful breakout here could confirm a broader trend reversal.
SHIB Derivatives Market Reflects Cautious Sentiment
While SHIB’s spot price hints at a potential breakout, the derivatives market paints a more cautious picture. According to Coinglass data, open interest has slipped by 2.14% to $145.33 million. Additionally, long liquidations totaled $244,000 in the past 24 hours — significantly higher than the $57,000 in short liquidations.
This imbalance has pushed the long-to-short ratio down to 0.9298, reflecting a current bearish tilt among leveraged traders. Funding rates have also dropped to 0.0019%, further highlighting cautious market sentiment.
Also Read: Shiba Inu [SHIB] Faces Bearish Pressure as Price Targets Key Liquidity Zone Near $0.0000110
Breakout Could Shift SHIB Momentum
Shiba Inu is now at a technical crossroads. A breakout from the falling channel could shift sentiment and attract renewed bullish momentum, potentially driving the price toward $0.00001390. Conversely, failure to hold support at $0.00001100 risks a deeper correction toward the psychological $0.00001000 mark.
For now, all eyes remain on SHIB’s ability to break the channel and reignite its bullish trend.
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
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