SHIB Plunges 7.4% in One Week, but Market Sentiment Remains Cautiously Optimistic

The cryptocurrency market continues to reflect broader economic uncertainties as SHIB$0.0₅8142 faces significant downward pressure.

Recent price action shows SHIB testing critical support at $0.0000127 after experiencing a 7.4% decline from recent highs, with volume spikes coinciding with major selloffs particularly during early May, according to CoinDesk Research's technical analysis data model.

Despite current volatility, on-chain data reveals growing institutional confidence in SHIB's long-term prospects. April 2025 saw the addition of 109 new millionaire wallets holding SHIB, bringing the total to 860 addresses with at least $1 million in tokens. This accumulation occurred even as SHIB's 7% price gain in April underperformed compared to Bitcoin's surge toward $95,000.

Market sentiment remains cautiously optimistic as futures open interest for SHIB nearly doubled in April, rising from under $97 million to nearly $190 million. Meanwhile, ongoing development of Shibarium, SHIB's Layer-2 blockchain, continues with improvements to transaction throughput and validator onboarding that could provide fundamental support for future price action.

Technical Analysis Highlights

• Price action reveals a series of lower highs and lower lows, with volume spikes coinciding with major selloffs, particularly during the May 3rd decline below $0.0000130.
• A key horizontal support zone has formed around $0.0000127, which has been tested multiple times in the last 48 hours.
• The $0.0000129 level now represents immediate resistance, with the Fibonacci retracement suggesting potential stabilization at the current level before any meaningful recovery can occur.
• In the last 100 minutes, SHIB demonstrated remarkable volatility and recovery, initially plunging to a critical support level at $0.0000126 during a high-volume selloff at 13:31-13:40, where volume peaked at over 22 million units.
• The price found strong buying interest at this support zone, triggering a V-shaped recovery that accelerated dramatically around 13:57-14:01, where bullish momentum pushed SHIB up nearly 10% from its lows.
• The most recent price action shows consolidation above $0.00001276 with decreasing volume, suggesting short-term exhaustion after the recovery rally, though the higher lows pattern forming since 14:40 indicates potential for continued upward movement if the $0.00001274 support holds.
  

Disclaimer: This article was generated with AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. This article may include information from external sources, which are listed below when applicable.