- Shiba Inu has broken below key support at $0.0000129, signaling increased bearish momentum and the likelihood of further downside.
- Despite some signs of accumulation, weak on-chain metrics and falling trader confidence suggest continued short-term pressure.
Shiba Inu (SHIB) is facing intensified bearish pressure after breaking below a crucial support level at $0.0000129, casting doubt on the memecoin’s short-term recovery. Once positioned in a stable two-month range, SHIB’s recent price action now points towards a likely move to the range lows instead of a bounce toward its highs.
This technical weakness coincides with growing signs of selling pressure. According to recent data, large whale wallets have been offloading SHIB, amplifying bearish sentiment in the market. Interestingly, despite this, exchange net position change data reveals that more SHIB tokens have been flowing out of exchanges than into them since January—a pattern often associated with accumulation rather than immediate selling.
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Still, this apparent contradiction has not translated into bullish momentum. On-chain analytics platform Santiment shows that SHIB‘s funding rate dipped below zero in early May, a signal of bearish market expectations. Adding to the gloom, Open Interest has declined since April 26, indicating waning enthusiasm among futures traders.
A brief spike in active addresses early this month sparked hope for renewed demand, but that activity quickly faded. Combined with falling mean coin age (MCA) trends and minor bumps in dormant circulation, it appears the market is undergoing a phase of weak hands exiting and potential quiet accumulation.
Meanwhile, the 30-day Market Value to Realized Value (MVRV) ratio has dipped back into negative territory, which historically suggests that SHIB may be undervalued. This could signal a window for accumulation before any potential price recovery—provided broader market conditions turn favorable.
In conclusion, while there are hints of long-term accumulation, Shiba Inu’s near-term outlook remains under bearish control. A retest of range lows seems more probable unless bulls can regain momentum swiftly. Traders should watch on-chain activity and sentiment shifts closely as SHIB navigates this critical consolidation phase.
A sustained consolidation phase might lay the groundwork for a stronger comeback—but until then, caution remains the name of the game.