SHIB Traders Brace for Volatility as Bid Walls Face Stress Test

Shiba Inu (SHIB) is showing early signs of stabilization on the daily timeframe, but the broader structure still leans cautious. 

After dipping earlier in the week, the price has begun to recover modestly, suggesting that sellers are losing some short-term control. However, the asset remains positioned beneath key trend levels, keeping the broader outlook fragile.

The current setup reflects compression — a market caught between layered resistance above and vulnerable liquidity below. The next decisive move could be sharp.

Shiba Inu’s Short-Term Momentum Improves, But Broader Trend Remains Under Pressure

On the daily chart, SHIB’s recent candles reflect a shift from steady decline toward consolidation and mild recovery. The short-term moving average has flattened and is beginning to tilt upward, signaling that immediate selling pressure is fading. This typically suggests that bears are losing dominance in the very near term.

Daily chart for SHIB/USD (Source: GeckoTerminal)

However, the price still trades beneath the slower-moving average, which continues to act as dynamic resistance. Until SHIB reclaims this level convincingly, the broader daily trend remains tilted to the downside.

Momentum indicators reinforce the balanced but cautious picture. The MACD histogram has turned slightly positive, reflecting early bullish momentum development. Yet, the move lacks strength, indicating that buying pressure is improving but not expanding aggressively. 

Meanwhile, the RSI has climbed out of weaker territory and is hovering in neutral ground. This shows that oversold conditions have eased, but momentum is not yet strong enough to confirm a sustained bullish shift.

In essence, the technical backdrop suggests stabilization — not confirmation of reversal.

Immediate Resistance at $0.00000703 Becomes the First Real Bullish Test

The first meaningful upside barrier sits at $0.00000703. A daily close above this level would mark a structural shift in short-term sentiment and potentially trigger follow-through buying.

Beyond that, the $0.00000873 and $0.00000879 resistance cluster becomes the next key battleground. These levels represent stronger historical supply zones and would likely attract profit-taking. If SHIB manages to break and hold above this higher resistance band, it would signal a more decisive bullish reversal on the daily timeframe.

Until then, rallies may face hesitation and rejection near overhead supply.

Critical Support at $0.00000591 Holds the Structure Together

On the downside, $0.00000591 is the immediate structural support level traders are monitoring. Holding above this zone preserves the current consolidation range and keeps recovery hopes intact.

A break below that level would likely accelerate bearish momentum and increase pressure toward the next support at $0.00000562. Losing both support zones would shift the daily structure firmly back into continuation decline territory.

The market is therefore positioned at a technical crossroads — support must hold to maintain balance.

SHIB’s Order Book Liquidity Reveals High-Risk Zones Below and Volatility Triggers Above

Order book data paints a high-stakes picture beneath the surface. 

Several significant bid walls are positioned below current price levels, suggesting defensive liquidity attempting to prevent deeper drops. However, the projected downside impact if those walls fail is substantial. In particular, the collapse of the largest bid cluster could expose SHIB to a dramatic downside expansion, highlighting how dependent the current structure is on liquidity support.

At the same time, multiple ask walls are layered overhead. Clearing the nearest sell wall would likely only result in modest upside continuation. However, once larger sell clusters are absorbed, the path toward higher resistance could open quickly. In such cases, price often accelerates sharply as liquidity gaps form.

This imbalance suggests that while SHIB appears stable on the surface, liquidity dynamics could amplify whichever direction ultimately breaks.

Long Trade Setup: Waiting for Confirmation Above Resistance

For bullish traders, the more conservative approach would be waiting for a confirmed daily close above $0.00000703. 

Ideally, that move would be accompanied by expanding momentum and stronger volume participation. Such confirmation would increase the probability of continuation toward the higher resistance cluster near $0.00000873–$0.00000879.

Stops for breakout traders could be positioned just below reclaimed resistance to manage risk.

More aggressive long entries may emerge near $0.00000591 support, but this approach carries greater downside risk if liquidity support fails.

Short Trade Setup: Breakdown Below 0.00000591 Could Accelerate Selling

Bearish traders may look for a decisive breakdown below $0.00000591 as confirmation of renewed downside pressure. 

In that case, $0.00000562 becomes the next technical objective. If bid walls begin collapsing in the process, downside momentum could intensify quickly.

Alternatively, rejection near $0.00000703 resistance — especially if momentum weakens — could provide short-entry opportunities with clearly defined risk above the resistance zone.

Market Outlook: Compression Signals Volatility May Be Near

SHIB’s daily chart currently reflects compression between vulnerable support and layered resistance. Momentum is improving, but not yet strong enough to confirm a full bullish reversal. Meanwhile, liquidity structures suggest that once either support or resistance decisively breaks, volatility could expand rapidly.

The next confirmed daily close outside the $0.00000591–$0.00000703 range may determine SHIB’s next major directional move.

Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.