Shiba Inu (SHIB) continues to captivate traders as it maneuvers within a well-defined ascending channel. This pattern, signaling bullish sentiment, holds strong as long as SHIB respects its lower trendline. However, recent price movements and ecosystem developments warrant close attention to assess its future trajectory.
Key Support and Resistance Levels
Currently, SHIB is trading near the $0.00002181–$0.00002238 range, coinciding with the critical 0.618 Fibonacci retracement level. This zone has acted as a strong support, suggesting potential for further upward momentum. Analysts have identified immediate targets at $0.00002715 (T1), $0.00003083 (T2), and $0.00003511 (T3).
However, a failure to hold above this support level could lead to a bearish retracement, challenging SHIB’s position within the ascending channel. Traders are advised to monitor price action closely, particularly around the channel’s lower boundary.
Market Sentiment and Accumulation
SHIB’s trading dynamics reveal a tug-of-war between short-term profit-takers and long-term accumulators. While spot inflows indicate profit-taking near resistance levels, consistent outflows suggest ongoing accumulation. This interplay has stabilized SHIB’s price despite market fluctuations.
Funding rates for SHIB remain neutral to slightly positive, reflecting cautious optimism. Meanwhile, the Fear and Greed Index indicates moderate greed, signaling confidence among market participants. However, overbought conditions could trigger a short-term correction if SHIB struggles to surpass $0.00002715.
Ecosystem Developments
Shiba Inu’s burn activity has slowed, with only 9.38 million tokens burned on January 14, 2025—a 55% decline from previous days. This raises concerns about the project’s deflationary ambitions. Conversely, Shibarium, the ecosystem’s Layer-2 blockchain, remains stable, boasting over 791 million transactions and 2.095 million addresses.
Despite no new contract deployments, the network’s activity highlights consistent engagement within the Shiba Inu community.
SHIB’s price outlook depends on its ability to maintain key support levels within the ascending channel. Traders should remain vigilant to market sentiment shifts, as a breakout above $0.00003511 could signal accelerated bullish momentum, while a breach below $0.00002181 may invalidate the uptrend.
Also Read: Shiba Inu (SHIB) Price Surge: Analyzing Bullish Momentum and Key Support Levels for 2025
Steady ecosystem activity offers a foundation for optimism, but revitalized burning efforts are crucial for long-term deflationary goals.
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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