August 5, 2025 — Shiba Inu (SHIB) may have posted a nearly 10% loss over the past week, but beneath the surface, technical indicators and market data suggest resilience, with signs pointing toward a potential bullish reversal in the near term.
Despite market-wide uncertainty and price volatility, SHIB still holds a 7% gain over the past month, and several key metrics are flashing green for traders eyeing a comeback.
Exchange Reserves Near Yearly Lows — A Bullish Signal
A crucial sign of strength lies in Shiba Inu’s exchange reserves, a metric often used to gauge sell-side pressure. According to data from CryptoQuant, SHIB’s exchange reserves remain close to their 12-month low of 895.9 billion tokens, last seen on June 22. As of August 5, that figure has only marginally increased to 1.04 trillion — still well below the yearly average.
This low reserve level suggests minimal panic selling and limited profit-taking, indicating that major holders are likely accumulating or holding, not exiting — a bullish backdrop for future price movement.
Chaikin Money Flow Divergence Shows Hidden Accumulation
Another promising indicator is the Chaikin Money Flow (CMF). While SHIB’s price made a lower low earlier this month, CMF showed a higher high, signaling a bullish divergence. This pattern often points to buying pressure building beneath the surface, even when prices temporarily pull back.
“This type of divergence is often a precursor to trend reversals,” noted technical analysts. “It’s a sign that smart money may be accumulating.”
Technical Structure Still Bullish — But Resistance Levels Loom
On the charts, SHIB recently bounced off the lower trendline of an ascending triangle, a pattern typically associated with bullish continuation. The upward-sloping base of this triangle remains intact, suggesting that the broader bullish structure is holding — for now.
However, the road to recovery won’t be easy. The token faces multiple resistance zones at:
- $0.0001258 (current resistance)
- $0.0001318
- $0.0001368
A sustained move above these could set the stage for a breakout to $0.0001599, a critical level that would confirm a higher high — a structure Shiba Inu hasn’t achieved in months.
“If SHIB can break past $0.0001599 with volume, we could see renewed bullish momentum,” say analysts.
On the downside, a break below $0.0001160, the triangle’s lower trendline, would invalidate the bullish setup and raise the risk of a deeper correction.
Outlook: Cautious Optimism Amid Market Pressure
While the past week has been shaky, Shiba Inu’s technical and on-chain fundamentals remain relatively healthy. With low exchange reserves, bullish CMF divergence, and intact support, the meme coin could be positioning for a bounce — assuming broader market sentiment stabilizes.
Bottom Line:
SHIB may be down, but it’s not out. As long as key support holds and buying interest continues to build, Shiba Inu remains in the game for a potential recovery through August.
