The cryptocurrency market is buzzing with renewed momentum, and Shiba Inu (SHIB), one of the most recognizable meme-based altcoins, is showing strong signs of a potential breakout. Following Bitcoin’s surge to an all-time high near $107,000, SHIB has gained approximately 10% over the past 30 days—catching the attention of traders and long-term investors alike. While meme coins often ride market waves, Shiba Inu appears to be building a more sustainable foundation for growth.
Backed by bullish technical patterns, favorable on-chain metrics, and shifting investor sentiment, SHIB may be on the verge of a significant price move. Let’s explore four compelling reasons why Shiba Inu price is primed for a breakout in the current market cycle.
Bullish Chart Pattern Signals Potential Reversal
One of the most promising indicators for Shiba Inu’s price movement is the emergence of an inverse head-and-shoulders pattern on its price chart. This well-known technical formation typically signals a reversal from a downtrend to an uptrend, especially when confirmed by rising volume.
The pattern is defined by three troughs: the left shoulder, the head (the lowest point), and the right shoulder. When price breaks above the "neckline" connecting the peaks between these troughs, it confirms the reversal. Traders measure the distance from the head’s low to the neckline and project that same distance upward from the breakout point to estimate a potential target.
In SHIB’s case, this calculation suggests a possible move toward $0.000023, with further upside potential if momentum sustains. This technical setup, visible on platforms like TradingView, has attracted technical traders who view it as a high-probability opportunity for long positions.
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On-Chain Metrics Reveal Declining Selling Pressure
Beyond chart patterns, on-chain data offers deeper insight into investor behavior—and for Shiba Inu, the signals are increasingly positive.
The 30-day MVRV (Market Value to Realized Value) ratio has dropped below zero, indicating that the average holder is currently not in profit. While this might sound bearish at first glance, it actually reduces immediate selling pressure. When investors are underwater, they’re less likely to sell, preferring to hold in anticipation of recovery.
Additionally, Shiba Inu’s supply on centralized exchanges continues to decline. Fewer tokens available for immediate sale means reduced liquidity for sellers, which historically precedes bullish price movements. When supply tightens and demand remains steady—or increases—price tends to respond positively.
This combination of low exchange supply and muted profit-taking suggests that long-term holders are accumulating or holding firm, creating a supportive environment for a price breakout.
Majority of Holders Are Now in Profit
A critical shift has occurred in Shiba Inu’s holder distribution: the vast majority of investors are now in profit. According to the Global In/Out of the Money (GIOM) metric, approximately 86.31% of SHIB holders—representing over 849 trillion tokens—are currently above their entry price. Only about 7% remain underwater.
This dynamic significantly reduces downward pressure on the price. When most holders are profitable but haven’t sold, it often indicates strong conviction and confidence in future gains. These investors may be waiting for higher targets before taking profits, allowing momentum to build.
At the time of writing, SHIB is trading around **$0.00002727**, with a 2% gain in the past 24 hours. This uptick aligns with broader market strength, as Bitcoin stabilizes above $107,000 and Ethereum pushes past $4,000—creating a favorable environment for altcoins like SHIB to thrive.
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Market Sentiment and Broader Crypto Rally Fuel Optimism
Shiba Inu doesn’t exist in a vacuum. Its performance is closely tied to overall market sentiment, and right now, conditions are highly favorable.
The recent surge in Bitcoin and Ethereum has reignited interest across the altcoin ecosystem. Meme coins, in particular, tend to perform strongly during bull markets when risk appetite is high. With institutional inflows increasing and macroeconomic concerns easing, investor confidence is on the rise.
Moreover, Shiba Inu’s ecosystem development—though often overshadowed by price talk—continues to evolve. Projects like ShibaSwap, Shibarium (its Layer-2 blockchain), and ongoing NFT initiatives contribute to long-term utility and community engagement, differentiating SHIB from purely speculative meme tokens.
As more users interact with the Shiba ecosystem, demand for the token may grow organically—not just from traders, but from actual use cases.
Frequently Asked Questions (FAQs)
What is an inverse head-and-shoulders pattern?
It’s a bullish reversal chart pattern characterized by three troughs—the middle one being the lowest—followed by a breakout above the neckline. It suggests a shift from bearish to bullish momentum.
What does a low MVRV ratio indicate for SHIB?
A 30-day MVRV below zero means most investors are not in profit, which reduces selling pressure and increases the likelihood of accumulation or holding behavior.
Why is exchange supply important for price movement?
Lower supply on exchanges means fewer tokens are readily available for sale. This scarcity can amplify upward price pressure when demand increases.
How does holder profitability affect SHIB’s price?
When most holders are in profit but don’t sell immediately, it signals confidence and can lead to sustained buying pressure as new investors enter.
Can Shiba Inu reach $0.00004 in 2025?
Based on current momentum, technical patterns, and market conditions, many analysts believe SHIB could reach $0.00004 or higher by late 2025—if bullish trends continue.
Is Shiba Inu more than just a meme coin?
Yes. While it started as a meme token, Shiba Inu has developed an ecosystem including decentralized finance (DeFi), NFTs, and its own blockchain layer (Shibarium), adding long-term value potential.
With strong technical signals, supportive on-chain data, improving holder profitability, and a favorable macro environment, Shiba Inu is positioned for a potential breakout. While past performance doesn’t guarantee future results, the alignment of multiple bullish factors makes SHIB one of the most watched altcoins in the current cycle.
Whether driven by speculation or growing utility, Shiba Inu’s momentum reflects broader shifts in market psychology—one where community-driven projects continue to capture attention and capital.
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