Shiba Inu is showing some signs of life after a tough week, and traders are now looking closely at the charts to see if this is the start of something big.
The price of SHIB is able to recover from the beginning-of-the-week slump and is currently hovering around the region of $0.00000857, which brings it right back into the mix as it tests some key Fibonacci levels.
The beginning of the week revealed SHIB trying to grind its way lower, although the token did manage to hold up around the bottom of the range pegged at $0.00000833-$0.00000869.
It then moved northwards and established a new local high at $0.00000892 before settling into a sideways movement.
What you'll learn 👉
SHIB Is Trying to Work Its Way Out of the Downtrend
When you zoom out to the weekly chart shared by TheCryptoBasic, the wider trend is still pointing down. Several weeks of red candles have wiped out much of the previous move, and SHIB is still trading below multiple key Fibonacci retracement levels.
Right now, the SHIB price is sitting in the lower extension zone, between the recent $0.000007 swing low and the 1.0 Fibonacci level around $0.000010.
The price often pauses in this area before deciding whether it wants to reverse or continue lower, and SHIB’s quiet rebound indicates some buyers may already be stepping in.
The real test comes above. A close above 1.0 would be the first indicator that the downtrend is slowing down if the SHIB price is able to close a weekly candle above this Fib level. Clearing this area will open the way towards the 0.786 Fib level at $0.0000113 and then the 0.618 level at $0.0000124, both of which have previously sparked rallies.
What Happens If SHIB Gets Rejected?
Of course, there’s another side to this. If SHIB fails to break above the 1.0 Fibonacci band, the chart still leaves room for one more move down.
The next major support sits near the 1.618 extension around $0.0000064. That’s significantly lower and would likely come into play if bulls lose momentum again.
The Stochastic RSI supports this cautious view. Both lines are buried in the oversold zone, showing that the selloff is stretched, but there’s still no confirmed bullish crossover.
In other words, the SHIB price can bounce in the short term, but it won’t mean much unless it reclaims those major Fib levels above.
Liquidations Indicate the Sell Pressure May Be Cooling
Liquidation data also gives a bit of insight into what’s happening beneath the surface. Over the past 24 hours, about $139K in SHIB positions were wiped out, and most of that came from long traders, not shorts.
Roughly $120K of the liquidations were longs, with just $19K from shorts. This usually happens when long traders get overextended and then flushed out.
When that selling pressure fades, markets tend to slow down and shift into consolidation or a modest relief bounce. Shorter-term liquidation numbers, the 12-hour, 4-hour, and 1-hour windows, all show much smaller activity, which supports this idea.
Read Also: Here’s Why the Crypto Market Is Up as Bitcoin Price Breaks $90k
What’s Next for SHIB?
SHIB isn’t out of trouble yet, but the market is at an interesting point. There’s a clear rebound off support, long liquidations are calming down, and momentum indicators are extremely oversold. All of this creates the setup for a potential short-term recovery.
But nothing really changes unless SHIB reclaims the broken Fib levels above, especially the 1.0 and 0.786 zones. If the SHIB price clears those areas, the next leg higher becomes realistic. If not, the chart still leaves space for another dip toward $0.0000064.
For now, traders are watching to see whether SHIB can turn this bounce into something more meaningful, or whether it’s just another pause before the next move lower.
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