An analyst says Shiba Inu may continue ranging below trendline resistance before a breakout triggers a heavy pump.
Shiba Inu (SHIB) experienced modest upward movement over the past 24 hours, registering a 2.83% increase. Despite this recent uptick, the price has remained below the $0.000014 mark, fluctuating within a narrow range.
The intraday chart reflected a gradual rise followed by a brief correction on May 19. However, this short-term bullish behavior has not altered the broader technical outlook, as the asset continues to trade under a dominant descending trendline.
This resistance, in place since SHIB’s retreat from the $0.00004 peak earlier in 2024, has remained unbroken, keeping the long-term bearish structure intact.
Descending Trendline Continues to Dictate Shiba Inu Structure
Analyst MMBTtrader’s chart on TradingView reiterates the persistent impact of the descending trendline, which has acted as dynamic resistance throughout 2024. SHIB has made multiple attempts to rally, most recently targeting the $0.000033 level in December 2024, but failed to hold above key resistances.
Per the chart, each rejection reinforced the broader bearish structure, leading the token to retreat to a local support zone of around $0.00001110.
According to MMBTtrader, the trendline currently caps resistance at approximately $0.00002044. He suggests that until SHIB breaks above this level, bullish momentum is unlikely to be sustained. Despite the resistance, the analyst anticipates extended ranging behavior beneath the trendline.
He notes that this consolidation phase may precede a breakout, at which point the market could experience a heavy pump. If SHIB manages to overcome this dynamic resistance, the projection places the next major price target at $0.000033.
Consolidation Persists Despite Temporary Price Recovery
Further technical insight comes from analyst Şeyma, who analyzed SHIB’s performance across multiple timeframes. On the weekly chart of the 1000SHIB perpetual contract, she identifies a prolonged downtrend beginning in December 2024.
Currently, the token is in a consolidation phase, where the price compresses within a defined range. This stage often precedes directional breakouts, requiring confirmation through specific resistance levels.
Şeyma notes that a weekly close above $0.000015 would be the first signal of possible bullish continuation. However, she emphasizes that confirmation requires a clean breakout above the next key resistance at $0.000017.
Only a breakout above both thresholds would validate a shift in market structure. In such a scenario, the path could open toward a higher target of $0.000030.
Derivatives Data Reflects Balanced Sentiment
Beyond spot price action, the SHIB derivatives market presents key signals of ongoing trader activity. According to Coinglass, open interest in Shiba Inu derivatives rose by 9.36% in the past 24 hours, reaching a total of $212.61 million. This suggests participants are holding onto existing positions longer, possibly in anticipation of a larger move.
The open interest-weighted funding rate also remains positive, indicating that long positions are paying to maintain their exposure.
Meanwhile, liquidation data over the past 24 hours showed a relatively balanced distribution. A total of $234.23K was liquidated, split between $114.99K in long positions and $119.25K in shorts. This even split points to a stable market structure with no evident panic or forced selling.
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.
