Shiba Inu’s Weekly Loss Might Be a Setup for Bullish Momentum in 2025?

2025-08-21
Shiba Inu’s Weekly Loss Might Be a Setup for Bullish Momentum in 2025?

Shiba Inu (SHIB), one of the most popular meme coins in the crypto space, faced an 11% weekly price drop that left many investors questioning its next move. 

While a decline of this magnitude typically signals weakness, on-chain and technical indicators suggest a different story. In fact, SHIB may be setting up for a bullish breakout in 2025.

By analyzing SHIB price action, sentiment indicators, and whale accumulation trends, we can uncover why this setback might just be the catalyst for a stronger rebound.

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SHIB Price Drop and Market Context

At the time of writing, SHIB trades at $0.00001234, reflecting its 11% decline over the past week. 

This pullback aligns with the broader weakness in the meme coin sector, where most tokens have struggled under profit-taking pressure and market consolidation.

However, unlike other meme coins, SHIB is flashing positive divergences that could hint at an upcoming reversal. These signals suggest that while the price looks weak on the surface, confidence in the asset is quietly building behind the scenes.

Read Also: Shiba Inu Price Faces Bearish Crossover, But Whale Activity Offers Hope

Shiba Inu Breakout Potential: Why Traders Remain Optimistic

Despite the downturn, SHIB’s weighted sentiment has been climbing, reaching a seven-day high of 1.153. 

This metric combines social media mentions with their positive or negative tones. A rising weighted sentiment during a price drop forms a SHIB bullish divergence, meaning traders are growing optimistic even as prices fall.

This is often a precursor to a trend reversal, as market participants may already be preparing for accumulation and future gains.

SHIB CMC.png

Shiba Inu Technical Analysis: CMF Strengthens the Case

Another technical signal comes from the Chaikin Money Flow (CMF) indicator, which measures the flow of capital into and out of an asset. While SHIB price has dropped, its CMF has turned positive at 0.04.

A positive CMF during a price decline means that money is flowing back into SHIB, suggesting accumulation at lower levels. Combined with the sentiment data, this strengthens the argument for a Shiba Inu breakout potential.

If momentum continues, SHIB could challenge the resistance at $0.00001295, while extended selling pressure may test the support near $0.00001167.

Read Also: Shiba Inu Burn Rate Rockets 48,000%: What This Means for SHIB Price and Supply

SHIB Sentiment Indicator Rising: The Whale Effect

Beyond technical indicators, whales have also stepped in. Between August 19–20, 2025, a new whale withdrew 132.35 billion SHIB ($1.66M) from Coinbase in three separate transactions.

This move signals confidence from large holders, who typically accumulate during consolidation ranges like SHIB’s current band of $0.000010–$0.000015. 

Lower supply on exchanges often creates upward price pressure, especially if retail demand returns.

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Critical Support and Resistance Levels for SHIB

The $0.000012 level has become a critical support zone for SHIB. Defending this area prevents a breakdown toward the $0.00001164 range (lower Bollinger Band).

However, for a confirmed bullish reversal, SHIB must reclaim $0.000013 (200-day EMA) and eventually break above $0.0000135, which served as support in July but now acts as resistance.

If successful, SHIB could target $0.000014–$0.000015 in the mid-term, making the current price zone an important battleground for bulls and bears.

Read Also: Shiba Inu Price Breakout Sparks Bullish Hopes, Can SHIB Hit $0.000016?

Conclusion

While SHIB has endured an 11% weekly loss, the broader picture suggests a potential turning point. With rising sentiment indicators, positive CMF flows, and whale accumulation, the groundwork for a 2025 bullish setup appears to be forming.

Still, investors should proceed with caution. SHIB remains heavily influenced by meme coin market sentiment and Ethereum’s performance, given its reliance on the Ethereum blockchain. 

For now, holding above $0.000012 support and reclaiming $0.000013 resistance will be key signals to watch for traders anticipating a Shiba Inu breakout.

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FAQ

Is SHIB price likely to recover in 2025?

Yes, if bullish divergences in sentiment and CMF continue, SHIB may see a trend reversal. However, a confirmed recovery requires breaking above $0.0000135 resistance.

What caused the SHIB price drop this week?

SHIB fell 11% due to overall weakness in meme coins and profit-taking. However, whale accumulation and technical stabilization suggest potential strength ahead.

What does SHIB bullish divergence mean?

It occurs when price drops but sentiment or money flow indicators rise, signaling that confidence and accumulation are happening despite short-term weakness.

Why is whale accumulation important for SHIB?

Whales withdrawing SHIB from exchanges reduce sell-side liquidity, often creating upward price pressure and showing long-term confidence.

What key levels should traders watch for SHIB?

Support lies near $0.000012 and $0.00001167, while resistance sits at $0.000013 and $0.0000135. Breaking these levels will determine SHIB’s next big move.

Disclaimer: The content of this article does not constitute financial or investment advice.

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