Shiba Inu Price Shows Recovery Signals Despite Market Crash

Shiba Inu (SHIB) has experienced significant price declines this week alongside broader cryptocurrency market weakness. The token dropped to $0.00001178, marking a critical support level held multiple times since August.

Technical analysis suggests the recent crash may present a buying opportunity. The price action has created a triple-bottom pattern at the $0.00001178 support level. This formation indicates potential upward momentum toward the neckline resistance at $0.00001481.

Shiba Inu price chart

Market analysts project a possible 25% price increase if SHIB breaks above this resistance level. The neckline corresponds with the ultimate resistance level of Murrey Math Lines, adding technical significance to this price target.

However, the bullish scenario faces risks. A break below the triple-bottom support would invalidate the positive outlook. Such a move would confirm a descending triangle pattern, typically signaling further downside pressure.

Whale Activity Supports Bullish Case

Large investors have increased their SHIB holdings during the recent price decline. Nansen data reveals that whale accumulation of over 62 billion tokens has recently been worth approximately $745,000. Total whale holdings now exceed 100.52 billion tokens, up from 38.52 billion last month.

Smart money investors have similarly increased their positions. These sophisticated traders boosted their SHIB holdings by 98% over the past 30 days to 12.46 billion tokens. This accumulation pattern typically occurs when institutional investors anticipate price recovery.

Exchange outflows provide additional support for the bullish thesis. SHIB tokens held on exchanges decreased to 282.23 trillion from 290 trillion in August. This reduction suggests investors are moving tokens to self-custody rather than selling.

Shiba Inu Balances in Exchange

Token Burns and ETF Prospects

The SHIB burn rate increased by 112% on Tuesday, removing millions of tokens from circulation. This deflationary mechanism reduces supply and potentially supports price appreciation over time.

Regulatory developments may provide additional catalysts. Industry speculation suggests companies may file for a spot SHIB exchange-traded fund. Such a product would create new demand channels for institutional and retail investors.

Recent SEC guidance on cryptocurrency listings positions SHIB favorably for potential approval. The token meets several criteria outlined in the regulatory framework, including the existence of a regulated Coinbase futures product.

Market sentiment remains mixed as technical patterns compete with fundamental developments. The triple-bottom formation offers short-term optimism, while whale accumulation and reduced exchange balances suggest longer-term confidence.

SHIB’s price trajectory will likely depend on broader market conditions and its ability to maintain support levels. A break above $0.00001481 could trigger the projected 25% rally, while failure to hold $0.00001178 may lead to deeper corrections.