Shiba Inu Near Key Support Amid 25% Drop and Bullish Candle Signal

Shiba Inu (SHIB) has recently experienced a sharp correction, with the token retreating by 25% from its peak on July 21, echoing broader bearish sentiment in the crypto market [3]. The decline has brought the price closer to a key historical accumulation zone near $0.000012—a level that has previously acted as a foundation for recovery in the past 12 months [3]. Traders are now monitoring whether SHIB can stabilize in this area and trigger a rebound, especially given its 74% discount from its March 2024 high [3].

Technical signals have introduced mixed signals. A potential bullish reversal emerged with an inverted hammer pattern, marked by a small body and a long upper wick, suggesting buyers attempted to push the price higher but met resistance [3]. This pattern, often seen at the end of downtrends, has been interpreted by some as an early sign of a reversal [3]. However, the price remains under pressure, with critical support at $0.00001108. A break below this level could invalidate the optimism and accelerate the decline [3].

On-chain data reveals a mixed picture. SHIB’s holder retention rate stands at 97.25%, meaning most tokens are still held long-term, with little immediate selling pressure [3]. Furthermore, 79% of SHIB holders have been holding for over a year, and 74% are whales, indicating a strong base of long-term support [3]. Despite this, whale activity has not been strong enough to spark a rally. Over the past 48 hours, whales on Binance and Coinbase acquired roughly $2 million in SHIB, a sign of dollar-cost-averaging (DCA) behavior rather than a large-scale buying spree [3].

Token burns have surged recently, with a single transaction destroying 602 million SHIB tokens on July 29—a 16,700% increase in burn rate compared to prior periods [3]. While this is a structural positive for supply reduction, it has not yet translated into meaningful price movement [3]. The token remains heavily discounted, yet the market is cautious, with nearly $52 million in short positions at risk of liquidation, which could potentially push the price toward $0.000011 [3].

Macro factors also weigh on SHIB’s near-term prospects. As a meme coin, SHIB faces increasing competition from utility-driven projects that offer more tangible use cases [3]. Additionally, broader market pressures, including U.S. tariffs and a stronger dollar, are contributing to the bearish trend [3].

In summary, SHIB is at a critical juncture. The bulls are hoping for a stabilization near $0.000012 and a potential rebound, while the bears see continued downside risk if selling pressure intensifies [3]. Investors should closely watch whale movements, token burn activity, and key support and resistance levels to gauge the next move in the market.

Source: [1] title1.............................(https://www.thecoinrepublic.com/2025/08/03/shiba-inu-coin-pay-attention-to-this-after-its-latest-move/)

[2] title2.............................(https://fox59.com/business/press-releases/globenewswire/9505064/shiba-inu-coin-gains-utility-and-community-strength-as-hashj-launches-shib-focused-contracts)

[3] title3.............................(https://www.ainvest.com/news/shiba-inu-shib-critical-juncture-inverted-hammer-signal-bullish-reversal-market-uncertainty-2508/)

[4] title4.............................(https://www.binance.com/en/square/post/27792796681897)

[5] title5.............................(https://coincentral.com/shiba-inu-and-dogecoin-are-fading-but-this-new-0-09-altcoin-is-just-getting-started-with-3-forecasts/)