SHIB trades inside a descending channel, with $0.000011 as key support.
The MVRV ratio sits in negative territory, showing most holders are underwater.
While such levels can precede relief rallies, SHIB sentiment remains cautious.
After its rally in July, Shiba Inu (SHIB) now faces the risk of erasing last month’s gains. In July, SHIB’s price climbed to $0.000016, but today its value has slipped to $0.000012 as buying pressure fades.
The decline may not be over unless certain technical and on‑chain conditions shift in SHIB’s favor.
In this analysis, we break down the key price levels to watch closely — and the potential catalysts that could determine whether SHIB breaks down further or avoids a deeper correction.
Shiba Inu Summer Surge in Danger
On the daily chart, SHIB’s price is trading inside a descending channel — a bearish pattern defined by lower highs and lower lows. This structure typically indicates that sellers remain in control, with each rally attempt being met by renewed selling pressure.
In this setup, the channel’s upper trendline acts as resistance, making it harder for SHIB to break out. The lower trendline serves as support, but repeated tests of this level can weaken it over time.
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As seen below, SHIB’s support lies around $0.000011. If bulls can defend this point, the cryptocurrency might avoid undergoing a prolonged correction.
Another key level to watch is $0.000014, which is the overhead resistance. If SHIB’s price fails to breach this level, the rejection might cause an extended decline.
However, if the cryptocurrency can rise above the resistance, it could give way to a notable breakout.
Outside the technical setup, the Market Value to Realized Value (MVRV) ratio could also shape Shiba Inu’s (SHIB) short‑term outlook.
A few weeks ago, SHIB’s MVRV ratio attempted to cross above the zero line. But the effort failed.
Instead, the metric has fallen to ‑27.79%, indicating that the average SHIB holder is sitting on significant unrealized losses.
While such profoundly negative readings can sometimes precede relief rallies as selling pressure eases, they also reflect a lack of immediate bullish momentum.
For SHIB to reverse its slide, the MVRV ratio will likely need to recover toward zero. Until then, sentiment remains cautious.
Like the daily chart, the 4‑hour chart shows Shiba Inu (SHIB) trading inside a falling channel.
Adding to the weak technical picture, the Bull Bear Power (BBP) indicator has dropped into negative territory, signaling that selling pressure has outweighed buying strength in the short term.
Unless SHIB’s price can break above the channel’s upper trendline with substantial volume and flip the BBP back to positive, the memecoin risks extending its decline. If that is the case, SHIB’s price could decline to $0.000010.
However, a rise in buying pressure could cause the altcoin to rise above the falling channel’s upper trendline. If that were to happen, the cryptocurrency might jump to $0.000015.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
Ryan is the Managing Editor at CCN, specializing in the crypto markets with a strong focus on technical and on-chain analysis across a broad spectrum of digital assets. His areas of expertise include Layer-1 and Layer-2 solutions, artificial intelligence (AI), real-world assets (RWA), decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), meme coins, and altcoins.
Before his current role, Ryan worked as a managing editor for BeinCrypto, while also contributing to Blockchain.com as a customer success associate, where he played a pivotal role in launching the company's margin trading product. He also has extensive experience in the financial sector, having served as a sales manager for foreign exchange brokerages such as Tradeview Markets and IronFX.
Ryan holds a bachelor's degree in Marketing and an honors degree in Business from the University of South Africa.
