Shiba Inu Faces 10% Rebound Potential Amid Key Support Zone

SwallowAcademy has identified a potential technical setup for Shiba Inu (SHIB), highlighting a key price region that could serve as a launch point for upward momentum. SHIB is currently trading at approximately $0.00001416, having experienced a 7.80% decline over the past week despite a modest 0.32% gain in the last 24 hours. This performance has prompted close examination of the token’s technical patterns, particularly in the context of its recent price behavior.

The analyst emphasizes a recurring demand zone between $0.0000139 and $0.0000144, which has served as a stabilizing range over several trading sessions. SHIB is presently consolidating around the higher end of this band, suggesting that buyers are actively defending the zone. This area has previously functioned as a springboard for price increases. Notably, on May 17, SHIB approached $0.0000139 and proceeded to climb to $0.0000153 the following day. A retest at $0.0000138 on May 19 resulted in a further rally to $0.0000160 by May 23. After a pullback, the asset once again touched the lower boundary of this range on May 25 and has since been fluctuating within this tightly defined corridor.

SwallowAcademy’s assessment incorporates multiple technical indicators. The 50-period Exponential Moving Average (EMA) stands at roughly $0.00001427, while the 200-period EMA is estimated near $0.00001456. SHIB’s current trading level places it slightly below the 50 EMA and just under the 200 EMA. A confirmed breakout above these two moving averages may be viewed as a signal for a trend reversal. The Relative Strength Index (RSI) sits at 46.92, just under the midline threshold of 50. This value implies that the token is neither in an overbought nor oversold state, a scenario often interpreted as neutral and conducive to accumulation.

Based on the strength of the current support zone, SwallowAcademy forecasts the possibility of a price rebound. Should SHIB manage to capitalize on its base of support, the asset could realize gains between 10% and 20% from present levels. The analyst has identified $0.0000159 as a near-term price target, which corresponds to levels observed on May 23. If achieved, this would represent an increase of approximately 10.34% from the current market value.

On-chain data from analytics firm IntoTheBlock lends further weight to the technical case. The number of long-term holders, defined as addresses holding SHIB for over a year, has increased by 0.84%. In contrast, there has been a decline in the number of medium- and short-term holders, with addresses in the 1–12 month range decreasing by 3.73%, and those under one month falling by 3.12%. This trend may suggest a shift in market sentiment, as investors increasingly adopt a long-term outlook while short-term speculative activity appears to be slowing. Such dynamics could reduce immediate selling pressure, helping to stabilize price action in the near term.

Shiba Inu (SHIB) is currently navigating a critical price range that could significantly influence its future trajectory. The token is trading at approximately $0.00001416, reflecting a 7.80% decline over the past week, despite a modest 0.32% gain in the last 24 hours. This price point is pivotal as it sits near a crucial support range between $0.000008 and $0.000014, where a substantial amount of SHIB tokens are held. According to on-chain data, 95 trillion SHIB tokens are currently parked within this support range, with an average cost basis of $0.000011. This massive concentration of tokens could be triggered if the Shiba Inu price falls below $0.000014, potentially leading to a significant sell-off. The support at $0.000014 is relatively thin, with just 4.97 trillion SHIB held by 8,410 addresses, indicating that this level is fragile and vulnerable to further price action.

If SHIB can successfully defend the $0.000014 level, it may pave the way for a rebound, with the potential to retest higher levels, such as the $0.00001764 hit earlier this month. However, a failure to hold this level could break the dam, unleashing the 95 trillion SHIB support. Traders are closely watching this level, as SHIB's fate may also be dependent on the broader crypto market sentiment.

Shiba Inu has recently established short-term resistance in the range between $0.00001467 and $0.00001470, where high-volume selling has prevented upward movement. The emergence of lower highs following previous peaks implies bearish pressure, while the token has found support between $0.00001426 and $0.00001436. Investors are anticipating the release of the personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, which could influence market sentiment and, consequently, SHIB's price movement.

An analyst has pointed out that Shiba Inu is currently trading within a triangle pattern, which could set up a 17% move for the memecoin. This pattern suggests that SHIB is consolidating before making a significant move, either to the upside or downside. Traders and investors are advised to monitor this pattern closely, as it could provide valuable insights into SHIB's future price movement.

In conclusion, Shiba Inu is at a critical juncture, with its price hovering near a crucial support level. The outcome of this price action could significantly influence SHIB's future trajectory, making it an important event for traders and investors to monitor closely. The broader crypto market sentiment and the release of key economic indicators could also play a role in SHIB's price movement, adding to the complexity of this trading setup.