Shiba Inu's Privacy Push Seeks to Attract DeFi as Price Struggles

Shiba Inu (SHIB) has stabilized near $0.00000851, with traders closely monitoring its ability to defend the $0.000008390 support level and challenge resistance at $0.000008840 according to analysis. The token's price action remains confined within a descending channel, a structure that has defined its trajectory since early 2025. Technical indicators suggest a fragile equilibrium, with buyers struggling to reclaim key Fibonacci retracement levels and momentum oscillators signaling cautious optimism.

The latest analysis from TheCryptoBasic highlights SHIB's recent 1.7% gain, a modest rebound amid broader market volatility that saw Bitcoin dip below $83,000 according to reports. Despite this short-term uplift, the token remains 7.2% lower on a weekly basis and 17.4% below its 14-day high. Trading volume of $132.8 million underscores continued uncertainty, with the Chande Momentum Oscillator (CMO) near -30-a threshold often associated with oversold conditions but still far from neutral territory. Analysts note that a sustained break above the 1.0 Fibonacci level at $0.00000880 and subsequent retesting of the 0.786 retracement at $0.0000088 would be critical for bullish momentum to resurface.

Meanwhile, the Shiba Inu team has announced a privacy-focused upgrade to the Shibarium layer 2 network, integrating Fully Homomorphic Encryption (FHE) technology from Zama. This development aims to enhance on-chain privacy, allowing transactions and smart contracts to operate without decrypting sensitive data. While the upgrade is positioned as a long-term infrastructure play, its immediate impact on price remains speculative. The technical roadmap includes Ethereum mainnet integration by late 2025, with broader EVM chain support expected in mid-2026. Analysts at academy.darkex.com argue this could attract developers in DeFi, gaming, and enterprise sectors, diversifying SHIB's ecosystem beyond its meme coin roots.

However, bearish signals persist. The EMAs (exponential moving averages) cluster remains bearish, with SHIB trading below the 20-day, 50-day, and 200-day EMAs. Coinglass data reveals $380,000 in net outflows on November 26, extending a trend of distribution that has characterized SHIB's performance over the past three months. This outflow pattern, coupled with weak inflows, has kept the downtrend intact. The Supertrend indicator at $0.00000954 remains a critical overhead resistance, and a failure to close above this level would reinforce sellers' control.

Market sentiment is further clouded by conflicting short-term forecasts. BitcoinEthereumNews cautions that incomplete technical data and a neutral RSI of 45.28 suggest SHIB is likely to remain in a consolidation phase through December 2025. In contrast, CoinCodeCap's analysis identifies $0.0000088 as a potential consolidation point, with a breakout above $0.0000093–$0.0000095 potentially opening modest upside. The broader crypto market's volatility, including Bitcoin ETF outflows, has also dampened risk appetite, though analysts at Bitfinex argue these outflows reflect tactical rebalancing rather than a structural shift in institutional demand.

Looking ahead, SHIB's path hinges on three key factors: confirmation of a breakout above $0.000008840, sustained inflows to counteract distribution pressures, and the broader crypto market's reaction to macroeconomic developments. A failure to reclaim the 0.786 Fibonacci level at $0.00000880 could see the token retest critical support near $0.000007880. Conversely, a sustained rally above $0.000009160 could reignite bullish momentum, provided liquidity conditions improve. For now, SHIB remains a high-risk, high-volatility asset, where community sentiment and token supply dynamics continue to outweigh fundamental drivers.