Shiba Inu (SHIB) Faces Critical Threshold: Is the Multi-Year Bear Trend Ending?

Open interest in Shiba Inu climbed 2.1% over the past 24 hours even as spot trading volume fell 18%, sending conflicting signals about where the popular meme token is headed next.

The Descending Triangle and Historic Support

SHIB is currently trading near its historic lows at approximately $0.0000056, following a 10% decline over the past week. This price action has brought the token back to a critical support zone around $0.0000055—a level that has historically cushioned major price drops since the coin’s early breakout in 2021. Despite repeated tests, sellers have consistently failed to push the price into a sustained breakdown below this floor. On a broader scale, SHIB’s price action is governed by a massive contracting descending triangle. This technical pattern has acted as a ceiling for the token since its 2021 peak. Every recovery attempt over the last few years has been rejected by the triangle’s falling upper resistance line, keeping the market in a prolonged corrective phase.

Potential Turning Point in the Wave Pattern

Technical analysts point to a completed three-wave corrective structure that may finally signal the end of SHIB’s long-term decline. This "wave" sequence began with a drop from the March 2024 high of $0.000045 down to $0.000010, followed by a partial recovery and a subsequent third wave that has returned prices to the lower edge of the triangle. The overlap between this wave completion and the long-term support zone creates what analysts call "confluence," suggesting that the multi-year correction could be in its final stretch.

The Road to Recovery: Two Key Hurdles

For the bulls to regain control and shift the market structure, SHIB must clear two distinct hurdles:

• The Trendline: The falling resistance line currently sits near $0.000011.
• Previous Highs: The recovery peak from late 2024 stands at $0.000033. Until these levels are breached, the technical outlook remains weak. However, because the triangle has been compressing price action for so long, a breakout in either direction is expected to produce a sharp, high-momentum move once the consolidation finally ends.