The price of Shiba Inu (SHIB) has continued to decline in recent days amid a weakening sentiment across the broader crypto market. Geopolitical risks and pressure on global financial markets have weighed on risk assets, including popular meme coins. Despite this, technical charts are beginning to show a formation that could signal a notable rebound.
Quick snapshot
🔹 SHIB is forming a large descending wedge, a pattern often preceding a strong bounce
🔹 The supply of SHIB tokens held on exchanges continues to decline
🔹 In a recovery scenario, $0.000010 stands out as a key resistance level
Shiba Inu fell to a daily low of $0.0000087, marking a 3.68% intraday drop and sitting about 25% below this year’s high. The token remains roughly 78% below its 2025 peak, with its market capitalization sliding to around $4.5 billion.
Macro pressure and ecosystem challenges weigh on price
The recent weakness in SHIB mirrors the broader crypto sell-off. Bitcoin and most altcoins declined after Donald Trump announced new tariff measures targeting several countries, including Germany and France. Investor caution was further fueled by developments in Japan, where government bond yields surged to multi-decade highs amid expectations that the Bank of Japan could raise interest rates multiple times this year.
Shiba Inu has also been pressured by a sharp slowdown in its burn rate. After more than 30 million tokens were burned the previous day, the amount destroyed on Tuesday plunged by 98% to just 500,000 SHIB.
Another drag comes from the Shibarium network, where data shows that total value locked (TVL) has dropped by 50% over the past 30 days to roughly $729,000, placing it among the smallest players in the Layer-2 sector.
One key positive: SHIB continues to leave exchanges
Despite the negative backdrop, there is a constructive signal. The amount of SHIB held on exchanges has been steadily declining in recent months, suggesting that some investors are withdrawing tokens to private wallets and accumulating them with a longer-term perspective.
Historically, such trends have often preceded stronger price moves.
Technical outlook: descending wedge could mark a trend shift
The daily chart shows that SHIB formed a bottom near $0.00000685 earlier this year before rallying to $0.000015 on January 4. Since then, the price has retreated and remains below the 50-day and 100-day exponential moving averages, indicating that bears still control the short-term trend.
However, from a technical standpoint, the most important development is the formation of a large descending wedge, created by two converging trendlines. Earlier this year, price briefly broke above the upper boundary of this pattern and then retested it—this break-and-retest structure is widely regarded as a reliable continuation signal in technical analysis.
As the wedge narrows, the probability of a decisive move increases. If a rebound is confirmed, the initial upside target would likely be the $0.000010 level, which marks this year’s key resistance.
Bottom line
Shiba Inu remains under pressure from macroeconomic and ecosystem-specific factors, but its technical structure suggests that a potential reversal may be approaching. Declining exchange balances and a maturing descending wedge create conditions that could support a recovery—timing, however, remains the critical question.
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