Analyst Identifies Two Possible Paths for Shiba Inu Price: Which Will Prevail?

An analyst outlines two price scenarios for Shiba Inu but favors the ascending path, noting strong support from the SHIB community for a rebound.

Shiba Inu (SHIB) has experienced a steady decline in its price over the past week. Today, SHIB trades near $0.0000134, marking a 7.17% drop in the last 24 hours and a 14.04% decline over seven days. 

Despite occasional minor rebounds, the overall trend remains bearish, reflecting ongoing challenges for the meme crypto. Consequently, an analyst is charting two case scenarios for SHIB price action.

TradingView analyst Aram Salimi highlighted Shiba Inu’s weekly chart, which shows a sustained downtrend since its all-time high around $0.000088 in late 2021. The price has repeatedly encountered a descending resistance line, which has connected several lower levels since 2021. Notably, this line has acted as a formidable barrier to upward momentum.

This resistance line initially triggered strong reversals at critical points from the 2021 peak, with SHIB hitting a bottom at $0.00000483 in June 2023. The line was tested again in March 2024, near $0.0000453, and in December 2024, near $0.0000335.

In both cases, the Shiba Inu price failed to break through and pulled back afterward. These repeated rejections confirm the trendline’s significance as a ceiling preventing gains.

Meanwhile, the ascending support line, which began forming mid-2023, traces higher levels and has provided several bounce points. The line emerged on June 5, 2023, when SHIB hit $0.00000483 following its all-time high decline.

The price respected this support between late 2023 and early 2024, when it dipped to test it at $0.0000071 on January 1, 2024, and surged back to the descending resistance. The support line was tested again on August 5, 2024, at $0.0000108.

However, in early to mid-2025, SHIB broke below this ascending support, settling near a demand zone around $0.0000108. This zone has previously capped bearish moves in August 2024 and April 2025. 

Potential Case Scenarios

The analyst outlines two potential future paths: a bullish scenario and a bearish scenario. The bullish projection assumes that SHIB will successfully hold the $0.0000108 support, rebound, and eventually break through the long-term descending resistance line.

After overcoming this resistance, the price could continue rising, possibly reaching its previous all-time highs around $0.000088. SHIB surging from the current $0.0000134 to $0.00009 represents approximately a 571.6% increase.

Conversely, the bearish scenario suggests that if the 0.0000108 support level fails to hold, SHIB may fall further, targeting the next significant levels around $0.000009 and then down to $0.000004300. If it drops from $0.0000134 to $0.0000043, SHIB would fall approximately 67.91%.

However, the analyst suggests that the ascending path appears more likely, citing strong support from the Shiba community.

Mixed Sentiment and Increased Activity

Shiba Inu’s derivatives data show notable activity changes amid the price action. Trading volume has surged by 71.11%, reaching $227.26 million, signaling growing market interest.

However, open interest declined by 15.52% to $194.10 million, suggesting traders might be closing contracts or rotating positions. This reduction could also indicate a preparation phase for new moves.

Long/short ratios provide contrasting views across exchanges. Binance’s SHIB/USDT pair shows a ratio of 0.9168, with slightly more shorts than longs by account count.

Conversely, OKX reports a ratio of 2.19, indicating that longs outnumber shorts significantly on that platform. This disparity reflects differing trader behavior in various markets.

Meanwhile, liquidation data shows long positions account for most losses, with $1.4 million in long liquidations over 24 hours, compared to just $5,280 in shorts. These liquidations, often from weaker hands, may pave the way for stronger buyers. A positive funding rate of 0.0065 further indicates a bullish bias, as more traders hold long positions despite SHIB’s price decline.