Analyst identifies key resistance levels for Shiba Inu; says a breakout could sustain bullish structure, otherwise price may retrace to lower demand zones.
Shiba Inu (SHIB) recorded a consistent downtrend between May 13 and May 19, moving from nearly $0.000017 to its current level near $0.00001423. This drop, totaling 14.4% over the past week and 2.1% in the last 24 hours, points to weakened short-term momentum.
Chart data suggests SHIB has formed a series of lower highs and lower lows. However, despite current bearish pressure, analysts are identifying potential breakout scenarios that could alter the market trajectory if SHIB clears key resistance levels.
Weekly Resistance Levels in Focus as Shiba Inu Consolidates
Analyst Şeyma provided a detailed multi-timeframe analysis of the 1000SHIB/USDT perpetual contract on Binance, examining both weekly and 4-hour charts.
Her weekly analysis shows that while SHIB faced a prolonged downtrend from December 2024 to early 2025, the token is now consolidating. This consolidation phase suggests a potential reversal could be on the horizon, contingent on crucial resistance levels being broken.
The first key resistance lies just above $0.000015, aligning with a red resistance trendline. According to the analysis, a weekly close above this level could signal bullish continuation. However, further confirmation would require a breakout above the resistance line near $0.000017.
Only a strong breakout candle above both levels would validate the bullish market structure and open the path to a potential target of $0.000030000. If SHIB moves from $0.000014 to $0.00003, this will mark a 114.29% gain.
Resistance on Shorter Timeframes
Meanwhile, Şeyma’s 4-hour chart analysis complements the broader view by zooming into recent price movements. The chart shows that SHIB rallied sharply from below $0.00001250 to above $0.00001750, followed by a correction.
This correction has brought the price back to the $0.00001600 area. If a breakout occurs here with strong volume and momentum, it may serve as a leading signal for the weekly bullish confirmation. Until then, the price remains below the threshold required for a confirmed trend reversal.
Moreover, if bullish confirmation fails, Şeyma points to well-defined demand zones as potential retracement targets. These zones rest just under $0.000013, with a secondary support around the $0.000010 level.
Ownership Shift Signals Accumulation
Further, data from IntoTheBlock shows a recent shift in SHIB ownership dynamics. The rise in whale ownership while retail remains stable and investors slightly reduce exposure signals a transition of control toward large, patient holders.
Notably, large holders, or whales, have increased their positions by 1.60% over the last 30 days.
At the same time, mid-sized investors reduced holdings by 4.99%, suggesting token transfers toward whale wallets. Retail ownership remained stable with a minor 0.46% drop, indicating no widespread panic among smaller holders.
Trendline Resistance Still Holds
Despite the accumulation, MMBTtrader, another analyst on TradingView, earlier cautioned that a longer-term bearish trend remains intact. His analysis identifies a dominant descending trendline, which has acted as resistance since early 2024.
After multiple failed attempts to breach this trendline, including a recent rejection near $0.000033, the price retraced to a local support zone at $0.000010083. MMBTtrader noted that a breakout above this trendline, which recently aligned near $0.000026, is necessary to confirm sustained bullish momentum.
He expects this resistance to lower to $0.00002044 as time progresses, with a successful breakout potentially pushing the price to $0.000033.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
