Shiba Inu (SHIB) is trading around $0.0000056, brushing against its historic lows after a 10% drop over the past week. The token's price action is testing a long-standing support zone near $0.0000055 that has cushioned drops since 2021.
A Descending Triangle That's Held for Years
The weekly chart shows a contracting descending triangle pattern that has contained SHIB since its 2021 peak. This pattern tightens as price oscillates between lower highs and a flat support floor. The current move has pushed SHIB back toward the lower edge of that triangle, the same area that repeatedly stopped sell-offs in prior years.
Open interest in SHIB futures climbed 2.1% over the past 24 hours, even as spot trading volume fell 18%. That divergence suggests some traders are positioning for a breakout, though the declining volume on the spot side hints at waning conviction among retail buyers.
Analyst Points to a Completed Corrective Wave
Crypto analyst Aurex Finance outlined a completed three-wave corrective structure that may signal the end of SHIB's long decline. According to the analysis, the first wave of the correction ran from a March 2024 high of $0.000045 down to $0.000010 by August 2024. A partial recovery lifted SHIB to $0.000033 in December 2024, before a third wave pushed prices back toward the lower edge of the triangle.
The three-wave decline appears to have ended on top of the long-term support zone, creating a confluence of technical factors. If that interpretation holds, SHIB could be setting up for a reversal. The first resistance level for any recovery is the falling trendline near $0.000011. The second resistance is the previous recovery high from late 2024, around $0.000033.
Whether SHIB can hold the $0.0000055 support remains the immediate question. A break below that level would likely accelerate losses, while a bounce from here could set up a test of the $0.000011 trendline. The next few trading sessions will show whether the support holds or cracks.
