Shiba Inu Rebounds From Critical Support; Here’s What Could Happen Next

Shiba Inu had a fairly underwhelming week, slipping nearly 10% in the last seven days. Despite that, it still holds a 7% gain over the past month.

But with the broader market in flux, traders are wondering whether SHIB’s momentum will hold through August or if the token is running out of steam. With that in mind, it’s worth looking at where the funds are flowing and whether the key support level that just held can sustain the pressure.

Exchange Reserves Still Hover Near Yearly Lows

Shiba Inu’s exchange reserves, a proxy for sell-side pressure, are still stuck near their yearly bottom.

The reserves hit a 12-month low of 895.9 billion SHIB on June 22. Two days ago, the figure was around 995 billion, and as of August 5, it has increased marginally to 1.04 trillion.

Shiba Inu price and exchange reserves: Cryptoquant

That is still significantly below the yearly average, suggesting only mild profit-taking and no signs of panic selling. The lack of significant exchange reserves often means that either the exchange inflows are low or the big names are offsetting the selling pressure. Both of these moves are bullish in nature for the Shiba Inu price.

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Money Flow Diverges From Price As Bear Power Wanes

Chaikin Money Flow (CMF), a metric that tracks buying and selling pressure based on volume and price movement, shows a bullish divergence. On July 31, CMF peaked before pulling back briefly. By August 3, it printed a new higher peak, even though the SHIB price made a lower low during the same period.

CMF divergence hinting at possible recovery: TradingView

This signals stronger buying interest, despite short-term price weakness; a classic case of hidden accumulation.

Shiba Inu Price Holds Ascending Support, But Resistance Levels Stack Up

SHIB recently bounced off the lower trendline of an ascending triangle, one of the most critical structures on the chart. That upward-sloping base is still intact, indicating the broader structure remains bullish. However, the token faces stiff resistance at multiple levels.

Shiba Inu price analysis: TradingView

The price is currently stuck below 0.0001258, with nearby resistances at 0.0001318 and 0.0001368. A move past these could open the door to the key breakout level at 0.0001599. That’s the level to watch; any sustained move above it would confirm a higher high, a key trend reversal structure SHIB hasn’t formed in a while.

While SHIB is showing signs of resilience, any breakdown below the ascending triangle’s lower trendline, currently hovering just above 0.0001160, would invalidate the bullish structure.