Shiba Inu's price has continued its decline, dropping to an intraday low of $0.0000087, marking a 3.68% daily loss and a 25% fall from its peak earlier in the year. The token remains 78% below its 2025 high, with its market capitalization shrinking to approximately $4.5 billion. This retreat is part of a broader crypto market downturn, exacerbated by geopolitical tensions and macroeconomic shifts, including new tariff announcements and rising Japanese bond yields.
Despite the bearish sentiment, a key technical development offers a glimmer of hope. The SHIB price chart has formed a large falling wedge pattern, a formation often interpreted as a bullish reversal signal. The pattern recently saw a break-and-retest of its upper trendline, which analysts view as a common continuation sign. This technical setup suggests the potential for a significant rebound in the coming weeks, with an initial price target set at the year-to-date high of $0.000010.
Fundamental factors present a mixed picture. On the negative side, the Shiba Inu ecosystem is facing headwinds. The token burn rate plummeted by 98% on a recent Tuesday to just 500,000 tokens, a stark drop from over 30 million burned the day prior. Furthermore, the total value locked (TVL) on its Shibarium layer-2 network has crashed by 50% over the last 30 days, now standing at just over $729,000, positioning it as a minor player in the competitive Layer-2 sector.
However, a positive on-chain signal is emerging. The supply of SHIB tokens held on centralized exchanges has been consistently declining over the past few months. This trend is typically viewed as a sign of accumulation, indicating that investors are moving tokens into long-term storage, which could reduce selling pressure.
Current price action shows SHIB consolidating near the 26-day Exponential Moving Average (EMA) around $0.00000840, following a rejection at the $0.000009 resistance level. The decline in trading volume during this pullback suggests profit-taking rather than panic selling. Momentum indicators like the Relative Strength Index (RSI) show cooling pressure, supporting the narrative of a market reset before a potential expansion in volatility.
