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Shiba Inu (SHIB) is approaching a critical support zone near its recent local lows, signaling potential short-term price action shifts in the memecoin market.
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The formation of a descending triangle pattern and declining on-chain metrics suggest bearish momentum, yet traders remain alert for possible bullish divergences.
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According to COINOTAG, “The liquidation heatmap highlights a magnetic zone around $0.0000114, indicating a likely test of this support level in the near term.”
Shiba Inu faces key support tests near $0.0000114 amid bearish structure; watch for potential bullish divergences signaling trend reversal.
Shiba Inu’s Descending Triangle Pattern Signals Bearish Momentum
Since March, Shiba Inu (SHIB) has been trading within a defined range between $0.0000115 and $0.0000142. The recent breakdown below the $0.0000152 support level confirmed a descending triangle pattern, a technical formation often associated with bearish continuation. This pattern has led to increased selling pressure, as evidenced by the retest of the broken support now acting as resistance. The market structure remains unfavorable for bulls, with the Relative Strength Index (RSI) consistently below the neutral 50 mark over the past three weeks, reinforcing the downward momentum.
On-Chain Indicators and Liquidation Zones Highlight Selling Pressure
Additional technical indicators support this bearish outlook. The On-Balance Volume (OBV) has been trending downward since late May, signaling that selling volume outweighs buying interest. Moreover, the liquidation heatmap from Coinglass reveals two significant clusters of liquidation orders: one at $0.0000136 and a closer, more immediate zone at $0.0000114, which corresponds to the recent local low. This concentration of liquidation levels suggests that SHIB could test these zones soon, potentially triggering further price declines if support fails to hold.
Source: SHIB/USDT on TradingView
Potential for Bullish Divergence at Key Support Levels
Despite the prevailing bearish sentiment, traders should monitor the $0.0000110 to $0.0000114 range closely for signs of a bullish reversal. A divergence on lower timeframes, such as a rising RSI or increasing OBV against falling prices, could signal a shift in momentum. Such technical cues may provide an entry point for long positions, especially if accompanied by increased demand and volume. However, caution is advised as the declining OBV indicates that selling pressure remains dominant, and any bullish reversal should be confirmed by multiple indicators before committing capital.
Strategic Trading Considerations Amid Volatility
Given the current market dynamics, traders are encouraged to adopt a disciplined approach. Setting stop-loss orders below the $0.0000110 level can help manage downside risk, while watching for volume spikes and candlestick patterns that confirm trend changes. Additionally, staying informed on broader market trends and news affecting meme tokens like SHIB is essential, as external factors can rapidly influence price action. Maintaining a balanced perspective between technical signals and fundamental developments will optimize decision-making in this volatile environment.
Source: Coinglass
Conclusion
Shiba Inu’s price action currently reflects a bearish market structure, with key support levels near $0.0000114 poised for testing. While the descending triangle pattern and declining volume indicators suggest continued downside risk, traders should remain vigilant for potential bullish divergences that could signal a trend reversal. Careful monitoring of liquidation zones and on-chain metrics will be critical in navigating SHIB’s near-term price movements. Maintaining a strategic, data-driven approach will enable investors to respond effectively to evolving market conditions.
