Shiba Inu (SHIB) is experiencing bearish pressure, with its price dropping 6% to $0.0000141 as of May 17. Despite this short-term pullback, several on-chain and technical indicators are signaling a potential bullish reversal. Analysts are now eyeing a breakout toward $0.000045, supported by increasing whale activity, a promising double-bottom pattern, and growing long positions in the derivatives market.
Shiba Inu Price Drops Amid Broader Meme Coin Correction
Over the past 24 hours, Shiba Inu’s price has declined to its lowest level in a week, settling around $0.0000141. This drop follows a wave of long liquidations—over $2 million worth in the last two days—according to Coinglass data. The sell-off isn’t isolated to SHIB; the broader meme coin market has also pulled back, with CoinGecko reporting a 2% decline in total meme coin market capitalization.
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While the correction has dampened short-term sentiment, it may be creating a strategic accumulation zone for investors. Historically, sharp pullbacks in high-volatility assets like SHIB have preceded strong rallies—especially when supported by fundamental on-chain shifts.
Whale Activity Surges Ahead of Potential Breakout
One of the most compelling signs of an upcoming rally is the surge in whale transactions. On-chain analytics platform Santiment reports that the number of transactions from whale addresses—those holding over $1 million worth of SHIB—nearly doubled between May 8 and May 15.
This uptick is significant. Past data shows that spikes in whale activity often precede major price movements. For example, in November 2024, a similar surge in whale transactions coincided with SHIB reaching its yearly high of $0.000033. The current behavior suggests that large investors may be accumulating ahead of a potential breakout.
Whales typically act on deeper market insights and long-term strategies. Their increased movement during a dip indicates confidence in SHIB’s underlying value and future price trajectory.
Technical Analysis: Double-Bottom Pattern Points to $0.000045
From a technical standpoint, Shiba Inu is forming a bullish double-bottom pattern on the weekly chart—a classic reversal signal that often marks the end of a downtrend.
The price has successfully defended the key support level at $0.0000107, bouncing twice from this zone. If SHIB can break above the neckline resistance at $0.000033, the measured move target aligns with $0.000045, representing over a 200% upside from current levels.
Additional technical indicators support this outlook:
- The Awesome Oscillator (AO) histogram has turned green, signaling weakening bearish momentum.
- While still below 50, the Weekly RSI is showing signs of stabilization. A breakout above the 50 level—especially if accompanied by AO crossing above zero—would confirm bullish momentum.
- The long/short ratio on Binance shows that 73% of futures traders are currently holding long positions, reflecting strong market conviction.
Together, these signals suggest that the recent 6% dip may be a temporary setback rather than the start of a deeper correction.
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Market Sentiment and Derivatives Data Favor Bulls
Derivatives data further reinforces the bullish case. The growing long bias on major exchanges indicates that traders are positioning for a rebound. With over 73% of Binance futures traders betting on higher prices, sentiment remains resilient despite the price drop.
Moreover, exchange outflows suggest that investors are moving SHIB to private wallets—a behavior typically associated with long-term holding rather than short-term trading. This reduces sell-side pressure and increases the likelihood of a supply squeeze if demand rises.
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Frequently Asked Questions (FAQs)
What is causing the recent drop in Shiba Inu price?
The current decline is part of a broader pullback across the meme coin market, triggered by long liquidations and profit-taking after recent gains.
Is Shiba Inu likely to reach $0.000045?
Yes, multiple indicators—including a double-bottom pattern, rising whale activity, and strong long positioning—suggest a breakout toward $0.000045 is possible if key resistance levels are breached.
What does whale activity mean for SHIB investors?
Increased transactions by large holders often signal accumulation before a price surge. It reflects confidence and can precede significant upward movements.
How reliable is the double-bottom pattern for Shiba Inu?
Historically, double-bottom formations on weekly charts have been accurate reversal signals for SHIB, especially when confirmed by volume and momentum indicators.
Should I buy SHIB during this dip?
While past performance isn’t indicative of future results, the current confluence of technical and on-chain signals suggests this could be a strategic entry point for long-term investors.
What factors could delay or prevent a SHIB breakout?
A failure to break above $0.000033 resistance, declining whale activity, or broader market weakness could delay the rally. Monitoring RSI and AO crossovers will be crucial.
Final Outlook: Dip Could Be Accumulation Phase
The 6% drop in Shiba Inu’s price should not overshadow the growing number of bullish signals. Whale accumulation, technical formation, and derivatives sentiment all point toward a potential rally toward $0.000045.
While short-term volatility is expected in meme coins, patient investors may benefit from viewing this dip as an accumulation phase rather than a reason to exit. As history shows, some of the best entry points emerge during moments of market uncertainty—especially when whales are quietly loading up.
For traders and long-term holders alike, monitoring key resistance levels and whale behavior will be essential in navigating the next phase of SHIB’s price journey.