Shiba Inu Ready for Technical Rebound? Expert Forecasts 5x Surge if Pattern Confirms
Shiba Inu (SHIB) may be forming a bullish turnaround structure on the charts, according to a current analysis shared by InvestingHaven. The analyst believes a breakout might drive SHIB to $0.0000666, nearly 5 times higher than its existing rate of $0.000011. The analysis indicates a possible “W-reversal”– a chart pattern that typically signifies a market bottom followed by a trend reversal. This pattern has formed near the $0.000012345 assistance zone, which SHIB has tested several times since January. The same zone also aligns with the expert’s projected yearly low of $0.0000133. SHIB’s price is currently hovering around $0.00001168, holding just above a structural support zone between $0.00001150 and $0.0000133. This base level was established after a resistance-support flip earlier this year and has since acted as a buffer during repeated sell-offs. The daily chart still shows SHIB trading below all major EMAs– 20, 50, 100, and 200-day– indicating that the trend remains downward for now. However, there are early signs of a pickup in short-term interest. Since June 17, SHIB’s 24-hour trading volume increased by over 43%, reaching $158.5 million, with almost all of it occurring on centralized exchanges. Higher volume near strong support levels can indicate growing short-term interest from traders, though sustained accumulation has not yet been confirmed.
On-Chain Data Challenges Expert’s Bullish Outlook In spite of technical support and increasing volume, SHIB’s on-chain data suggests limited network engagement. Shiba Inu network growth has declined by 77% since January. On May 18, only 1,093 new addresses were recorded, compared to nearly 4,900 at the beginning of the year. Wallet distribution data shows a clear shift in ownership. Between March and May, wallets holding between 100 million and 1 billion SHIB decreased from 73.6 K to 71.9 K, a decrease of approximately 2.3%. These wallets are typically associated with larger investors, and the decrease indicates that whales are reducing their exposure. At the same time, wallets holding between 10,000 and 100,000 SHIB continue to increase. This trend suggests that retail traders are entering while larger holders exit, a common pattern during distribution phases, not bullish accumulation cycles.
Exchange Flows and SHIB Burn Rate Show No Support for Turnaround Yet CryptoQuant data reveals SHIB saw net outflows of 24 trillion tokens on June 16. This suggests that traders are moving funds away from exchanges, but without a corresponding increase in network activity or accumulation elsewhere. The SHIB burn mechanism, which permanently removes tokens from circulation to reduce supply, has stalled. According to data from Shibburn, no tokens were burned in the last 24 hours, and the burn rate dropped to 100%. This eliminates one of SHIB’s most touted deflationary drivers, at least in the short term.
