Shiba Inu Analysis Suggests Multi-Year Decline Ending

Recent market data suggests that the prolonged bearish pressure on Shiba Inu (SHIB) could be nearing its conclusion, according to a technical analysis published on TradingView. The token is currently hovering near a critical support level established in 2021, despite a recent drop in price [1].

Key takeaways

• SHIB is trading around $0.0000056, sitting just above a key support zone at $0.0000055 [1].
• Open interest increased by 2.1% over 24 hours while spot trading volume fell by 18% [1].
• Analyst Aurex Finance identifies a completed three-wave corrective structure within a descending triangle pattern [1].
• Bulls must break resistance near $0.000011 and $0.000033 to shift the market structure [1].

Technical Analysis Identifies Potential Turning Point

SHIB has declined by 10% over the past seven days, bringing the price close to historic lows and back down to a support zone that has cushioned drops since the coin's early days [1]. Despite repeated tests, sellers have not managed to push the price into a sustained breakdown below this $0.0000055 area [1]. The broader chart structure is defined by a contracting descending triangle that has suppressed price action since the token's 2021 peak, turning back recovery attempts at a falling upper resistance line [1].

Analyst Aurex Finance, writing on TradingView, suggests this multi-year correction could be in its final stretch due to a completed three-wave corrective structure [1]. The analysis details a first wave that took the price from a March 2024 high of $0.000045 down to $0.000010 by August 2024 [1]. A partial recovery followed, lifting SHIB to $0.000033 in December 2024, before a third wave pushed prices back toward the lower edge of the triangle where they currently sit [1]. This overlap between the wave completion and the long-term support zone creates a confluence that points to a possible turning point [1].

Resistance Levels and Market Structure

Reports from the analysis indicate that any recovery attempt will face two clear hurdles [1]. The first is a falling resistance trendline sitting near $0.000011, and the second is the previous recovery high from late 2024 around $0.000033 [1]. Breaking above both levels would represent a meaningful shift in market structure and hand momentum back to buyers [1].

Until a breakout occurs, the long-term picture remains technically weak [1]. The triangle has been compressing price action for years, leading analysts to suggest that a breakout in either direction could result in a sharp move once it finally happens [1].

Why it matters

The potential end of a multi-year correction is significant for Shiba Inu, as it marks a possible departure from a downtrend that has dominated the chart since 2021 [1]. However, the analysis emphasizes that the market structure stays weak until the token can clear the