SHIB Faces 7.4% Drop in a Week, Yet Market Sentiment Stays Hopeful

Overview

The cryptocurrency market often reflects wider economic uncertainties, and Shiba Inu (SHIB) is currently facing major downward pressure. Recently, the price of SHIB was tested against crucial support at $0.0000127, after a 7.4% decline from its highs of $0.00001375 to $0.00001274 during the observed period. The volume has surged in tandem with significant selloffs, especially at the beginning of May, as per insights from CoinDesk Research’s technical analysis.

Key Insights

The recent downturn signifies a larger trend in the market.
On-chain data suggests a rising institutional confidence in SHIB’s long-term potential, highlighted by 109 new millionaire wallets emerging in April 2025.
In spite of the price drop, market sentiment exhibits cautious optimism; the futures open interest for SHIB nearly doubled in April, from approximately $97 million to nearly $190 million.

Technical Analysis Highlights

A sequence of lower highs and lower lows is evident, accompanied by volume surges correlating with significant selloffs, particularly noted on May 3 as the price dipped below $0.0000130.
A critical support zone is evidenced around $0.0000127, which has been repeatedly tested.
Present resistance is observed at $0.0000129, with Fibonacci retracement hints at potential stabilization before any robust recovery.
Recent price movements have demonstrated considerable volatility with a recovery rally seen at the 13:57-14:01 time period, suggesting a potential uptick if support levels hold.

Conclusion

Despite the prevailing volatility, the ongoing development of Shibarium, SHIB’s Layer-2 blockchain, aims to enhance transaction throughput and validator onboarding, which can serve as fundamental support for future price actions.