Shiba Inu (SHIB) Price: Technical Indicators Point to Potential 9% Decline

TLDR

• Shiba Inu is currently trading within a descending triangle pattern that signals a potential price move
• Open Interest in SHIB surged by 8% recently, indicating increased speculative activity
• Technical indicators suggest weakened momentum with the price near critical $0.000014 support level
• Liquidation data shows a cluster of liquidity just below current support levels
• Analysts predict either a 9% drop toward $0.0000129 or a possible 17% price swing

Shiba Inu (SHIB) has caught the attention of crypto traders as it shows signs of an impending price move. The popular memecoin broke out of a lower timeframe channel last week, briefly sparking bullish hopes before settling into a consolidation pattern. Recent data shows SHIB experienced an 8% surge in Open Interest, indicating increased speculative activity in the market.

The memecoin currently trades around $0.00001436, down about 2% over the past seven days. Price action has been sideways recently as traders await a decisive move.

Following a bullish breakout in the second week of May, SHIB was unable to advance beyond the $0.000017 resistance level. This marked a lower high compared to mid-February, suggesting diminishing upward momentum.

Over the past three weeks, Shiba Inu has declined toward former range highs at $0.000014, which now serves as a critical support level. The 20 and 50-day moving averages indicate that momentum remains bullish but has weakened considerably.

The market structure appears on the verge of shifting bearish. Technical analysts note that a session close below $0.0000142 would confirm this structure shift.

Shiba Inu Price on CoinGecko

The Chaikin Money Flow (CMF) indicator has sunk to the zero level, suggesting that capital flow currently favors neither buyers nor sellers. Meanwhile, the On-Balance Volume (OBV) has moved sideways throughout May, indicating balanced buying and selling pressure.

Triangle Pattern Emerges

SHIB’s price has been consolidating inside a descending triangle pattern over the past few weeks, as identified by multiple analysts. This pattern forms when price makes lower highs while finding support at a consistent level, creating converging trendlines.

The formation of this descending triangle pattern, combined with weakened momentum and falling demand, suggests that a bearish trend reversal could be imminent. Typically, descending triangles are continuation patterns for bearish trends, though they can sometimes act as reversal patterns.

The triangle pattern has been tightening over time, indicating that a breakout in either direction could occur soon. Based on technical analysis principles, the expected price move following a triangle breakout often equals the height of the triangle at its widest point.

Liquidation data appears to support the bearish scenario. The one-month liquidation heatmap shows a cluster of liquidity just under the $0.000014 support level. This concentration of liquidation levels has built up over the past ten days and sits very close to SHIB’s current market price.

Potential Price Targets

When combined with the triangle pattern, this liquidation data suggests SHIB could experience a 3% drop in the near term. If this initial drop occurs, it might trigger further selling pressure, potentially driving the memecoin toward the mid-range support at $0.0000129, representing a 9.3% decline from current price levels.

Alternatively, some analysts project a 17% price swing based on the dimensions of the triangle pattern. The direction of this move remains uncertain, as SHIB is currently positioned near the midway point between the upper and lower trendlines of the triangle.

As the consolidation period lengthens, the triangular channel continues to narrow, making a breakout increasingly likely in the coming days. Traders appear to be closely monitoring the $0.000014 support level, as a break below this could accelerate downside momentum.

The price action over the next few days should provide clarity on whether SHIB will break upward to challenge recent highs or confirm the bearish scenario with a move toward lower support levels.

SHIB is currently trading at $0.00001436, with market participants awaiting a decisive move outside the triangle pattern that has contained price action in recent weeks.