Shiba Inu (SHIB) Eyes 500% Rally Amid Inverse Head and Shoulders Pattern, But Weak On-Chain and Market Signals Raise Caution

Published: 2025-06-05 14:34:41 |

Shiba Inu (SHIB) is currently showing a potential bullish reversal as a possible inverse head and shoulders (IH&S) pattern forms, attracting the attention of crypto traders. Technical analysis suggests that a confirmed breakout above the neckline resistance at $0.000014 could set SHIB on a trajectory toward $0.000081, representing an upside of approximately 500% from the current price of $0.00001274. Despite this bullish pattern, recent on-chain data signals caution: whale holdings have declined by 2.8% over the last two months, dropping from 751 trillion to 730 trillion tokens, and SHIB has lost 11.42% over the past week. Shibarium’s total value locked (TVL) has also tumbled from a peak of $7 million to $2.33 million, reflecting lower user engagement. Key support lies between $0.0000122 and $0.0000125, while resistance is noted at $0.00001329, $0.00001368, and $0.00001385. The Relative Strength Index (RSI) shows mild oversold conditions, and trading volume remains subdued. Without a surge in trading activity or ecosystem growth, SHIB’s bullish technical setup may not result in a sustained uptrend. Traders should watch closely for a confirmed breakout above $0.000014 as a potential trigger for significant price movement.

Neutral

While Shiba Inu (SHIB) presents an attractive bullish setup with a rare inverse head and shoulders pattern, the effectiveness of this pattern is undermined by weakening on-chain metrics and falling user engagement. The decline in whale holdings and Shibarium’s TVL, alongside subdued trading volume and a recent price drop, signal that the bullish technical outlook may not trigger immediate upside without stronger confirmation. The technical formation provides reason for optimism if a breakout above $0.000014 occurs, but current market conditions suggest limited momentum and increased risk. Therefore, the overall impact on SHIB’s price is categorized as neutral unless significant volume or ecosystem developments emerge.