Key Insights
- Shiba Inu maintained higher lows above major moving averages while traders defended short-term support despite repeated rejection near resistance levels.
- Open interest dropped sharply from previous rally peaks, reflecting weaker leverage exposure and cautious sentiment across the broader SHIB derivatives market.
- More than 410 trillion SHIB tokens remain burned as stable exchange flows and contracting volatility support ongoing market stabilization efforts.
Shiba Inu held a firm short-term structure this week, even as buying momentum weakened near a major resistance zone. The token climbed toward the $0.00000670 region before sellers returned and capped the advance. However, buyers continued defending higher lows across the four-hour chart, keeping the broader recovery pattern intact despite fading upside pressure.
SHIB continued trading above its major exponential moving averages, reinforcing bullish short-term conditions across the market. The 20 EMA near $0.00000648 provided immediate support during recent pullbacks. Additionally, the 100 EMA around $0.00000634 and the 200 EMA near $0.00000624 strengthened the broader support base as traders monitored price stability closely.
Fibonacci Barrier Limits Momentum
The token faced repeated rejection near the $0.00000660 region as traders locked in profits near resistance. Besides, the $0.00000652 level is aligned with the 0.786 Fibonacci retracement zone, increasing selling pressure during recovery attempts. A breakout above $0.00000670 could expose SHIB to $0.00000690, while psychological resistance near $0.00000700 remains an important upside target.
Market data from Coinglass showed speculative activity cooled sharply compared with previous rally periods. Open interest previously climbed above $500 million during aggressive bullish phases. However, current open interest remained near $58 million, highlighting weaker leverage exposure and reduced trader confidence even as SHIB maintained a constructive technical structure across shorter trading timeframes.
Exchange Flow Data Stabilizes
Spot inflow and outflow metrics reflected unstable sentiment throughout recent months as exchange outflows dominated trading activity. Consequently, persistent selling pressure weakened momentum during earlier recovery attempts across the market. Recent data now showed inflows and outflows moving closer to balance, which suggested early stabilization as traders monitored whether demand could strengthen during upcoming sessions.
Shiba Inu continued reducing token supply despite softer market participation during May trading activity. The network has now burned more than 410.8 trillion SHIB tokens valued at nearly $7.36 billion. Additionally, over 4.3 million tokens left circulation during the past day, while nearly 190 million tokens were burned throughout the previous thirty-day period.
Compression Keeps Traders Focused
SHIB traded inside a tightening descending wedge as volatility contracted significantly throughout May trading sessions. Support near $0.00001180 remained critical for preserving the current structure while resistance between $0.00001264 and $0.00001286 capped recovery attempts.
Hence, traders continued watching volume activity closely because stronger inflows could push the token toward higher resistance levels during the coming sessions across the broader meme coin market today, for now.
