SHIB's Short-Term Bull Case and Midterm Risks: Strategic Entry and Exit Points for Traders

The Shiba Inu (SHIB) token has long been a wildcard in the crypto market, oscillating between speculative frenzy and quiet consolidation. As of October 2025, SHIB is trading at $0.00001044, navigating a delicate balance between short-term bullish momentum and midterm bearish risks. For traders, the key lies in dissecting technical price action, identifying strategic entry/exit points, and managing risk amid a market in flux.

Short-Term Bull Case: Breakouts and Divergence

SHIB's recent price action has shown signs of a potential breakout. Over the past week, the token has rebounded from the $0.00001019 support level and tested the $0.00001010 resistance, breaking above it on hourly charts. This move suggests a possible rally toward $0.00001050 if momentum holds, according to a Coinotag report. On the daily chart, a descending triangle pattern has emerged, with price consolidating between a descending resistance line and stable support near $0.0000099. Analysts like MMB Trader note that such patterns often precede significant moves, with a successful breakout above $0.0000108 potentially targeting the $0.000012–$0.000013 range, per a Coinotag analysis.

The MACD indicator further strengthens the bull case. A hidden bullish divergence has formed, with SHIB's price registering lower lows while the MACD shows higher lows-a sign of growing momentum, according to a CryptoFrontNews report. Additionally, an ongoing MACD crossover suggests a potential shift in market direction, adding weight to the idea that buyers are regaining control. On-chain data also supports this narrative: that CryptoFrontNews report noted SHIB's exchange reserves dropped by over 1.2 trillion tokens in late July and August, signaling reduced short-term supply and possible accumulation by larger holders.

Midterm Risks: Bearish Pressures and Oversold Corrections

While the short-term outlook is cautiously optimistic, the midterm picture remains bearish. SHIB is still trading below the critical $0.00001145 level, a key psychological and technical barrier. If selling pressure intensifies, the token could retest the $0.0000098 support or even drop to $0.0000075, invalidating the triangle pattern - a scenario discussed in the earlier Coinotag analysis.

The RSI indicator also paints a mixed picture. Over the past quarter, SHIB's RSI has oscillated between overbought (above 70) and oversold (below 30) conditions. A 30% price surge earlier this year pushed the RSI into overbought territory, raising concerns about profit-taking and potential reversals, as noted by CoinCentral. Conversely, a recent dip to 38.41 in the RSI signaled an oversold condition, prompting a 12% rebound, according to a Blockchain.News article. Traders must remain cautious: while oversold readings can indicate buying opportunities, they can also precede prolonged downtrends if fundamentals fail to support the price.

Strategic Entry and Exit Points for Traders

For traders looking to capitalize on SHIB's short-term potential, the key is to balance aggression with risk management. Here's a breakdown of actionable strategies:

1. Entry Points:
2. Primary: Buy SHIB near the $0.00001019 support level if it holds, with a stop-loss placed below $0.0000098 to mitigate downside risk - a tactic highlighted in the Coinotag report referenced above.

3. Secondary: Consider entering on a confirmed breakout above $0.0000108, provided volume surges to validate the move, per the Coinotag analysis discussed earlier.

4. Exit Points:

5. Short-Term: Target $0.00001050 as an initial profit-taking level. If the $0.0000108 resistance is breached, aim for $0.000012–$0.000013, as noted in the Coinotag analysis.

6. Midterm: If SHIB breaks above $0.00001145, consider scaling out as the RSI approaches overbought territory (70+), signaling potential exhaustion - a pattern observers including CoinCentral have highlighted.

7. Risk Management:

8. Use a 1–2% position size to limit exposure.
9. Trail stop-loss orders as the price moves higher to lock in gains.
10. Avoid holding positions beyond the triangle pattern's projected breakout window (typically 2–4 weeks).

Conclusion: Balancing Optimism and Caution

SHIB's technical setup offers a compelling case for short-term traders, but it's not without risks. The descending triangle pattern and bullish MACD divergence suggest a potential 20–30% upside in the near term. However, the token's inability to break above $0.00001145 and its history of overbought corrections mean traders must remain disciplined.

As the market enters a "quiet phase" marked by low volume and tight ranges, patience is key. For those willing to take calculated risks, SHIB could offer a high-reward trade-if executed with precision and a clear exit strategy.