Shiba Inu (SHIB) Price Outlook: Trendline Rejection and Liquidity Zones Signal High-Risk Correction

Shiba Inu (SHIB) is at a critical juncture in its price trajectory, with technical and on-chain signals converging to highlight a high-risk correction scenario. While the token has shown resilience near key support levels, the interplay of trendline rejections, liquidity exhaustion, and diverging on-chain dynamics paints a complex picture for short-term investors.

Technical Breakdown: Trendline Rejection and Price Action

SHIB has been testing a pivotal support zone near $0.0000090, a level that historically has acted as a floor for rebounds, according to u.today's coverage. Recent price action reveals a breakdown below this level, exposing the $0.0000080 liquidity zone as the next critical area of interest, per CoinEdition's analysis. This breakdown confirms a failure of a descending triangle pattern, a bearish continuation signal that aligns with the broader downtrend, as noted in CoinEdition's coverage.

Bullish technicals, such as a descending wedge formation and a bullish divergence on the weekly chart against Bitcoin, suggest lingering buyer interest, as noted in Coinotag's coverage. However, these patterns are now under pressure as SHIB trades below all major exponential moving averages (EMAs), forming a dense resistance cluster between $0.00001025 and $0.00001262, according to CoinEdition's latest analysis. A sustained close below $0.0000090 could trigger a retracement toward $0.0000075, while a rebound above $0.0000105 might reignite short-term optimism, per u.today's coverage.

On-Chain Liquidity: Accumulation Amid Distribution

On-chain data reveals a tug-of-war between accumulation and distribution. Exchange outflows have surged past $3.06 million, signaling ongoing distribution as liquidity returns to exchanges, according to CoinEdition. However, a -147.7 trillion SHIB netflow over 24 hours indicates tokens are being moved from exchanges to holder wallets-a classic accumulation sign, as reported by u.today. This divergence suggests retail and institutional investors are reducing immediate selling pressure, potentially setting the stage for a rebound if SHIB stabilizes above $0.0000090, as Coinotag's coverage suggests.

The $0.0000080 liquidity zone is particularly critical. If this level fails, the next visible target at $0.0000072 could face intense selling pressure due to exhausted liquidity pockets, according to CoinEdition. Conversely, a successful defense of $0.0000090 might trigger a short-term rally toward $0.0000105, fueled by reduced exchange liquidity and growing holder confidence, as noted in u.today's coverage.

Macro Catalysts: Institutional Recognition and Burn Dynamics

While the short-term outlook remains bearish, macro-level developments offer a counterbalance. SHIB's inclusion in the FTSE Grayscale Crypto Sectors Framework under the "Consumer & Culture" sector signals growing institutional recognition, as noted in The Crypto Basic's coverage. This could pave the way for future ETF inclusion, though no standalone SHIB ETF application exists yet, per The Crypto Basic's coverage.

Meanwhile, token burns have accelerated, with a 1,993% increase in burn rate and over 10 million SHIB tokens removed from circulation, according to Coinotag's coverage. These burns, combined with reduced exchange inflows (down 62% in a single day, as reported in Coinotag's coverage), suggest a structural shift toward long-term value retention.

Conclusion: Navigating the High-Risk Correction

SHIB's price outlook hinges on the battle for $0.0000090. A breakdown below this level would validate the continuation of a bearish trend, with liquidity exhaustion at $0.0000080 and $0.0000072 amplifying downside risks. Conversely, a rebound above $0.0000105 could reignite bullish momentum, particularly if accumulation trends persist, as noted in u.today's coverage.

Investors should closely monitor on-chain flows and EMA dynamics, as these will dictate whether SHIB transitions from a correctionary phase to a sustained recovery. For now, the token remains in a high-risk environment, with technical and liquidity signals pointing to a volatile near-term path.