Shiba Inu is testing a technical setup that could deliver a modest bounce toward resistance at $0.00000904 after weeks of declining prices.
The meme coin traded at $0.00000851 on Sunday, down more than 22% over the past month.
Technical indicators show SHIB has established support around $0.0000084-$0.00000847, creating a potential base for near-term gains.
The target represents roughly 6% upside from current levels.
However, market sentiment remains cautious with the Fear & Greed Index registering "Extreme Fear" at 25.
What Happened
SHIB has stabilized after touching a low of $0.00000776 earlier this month.
The token bounced to a weekly high of $0.00000952 on Thursday before pulling back to current levels.
Bollinger Bands suggest the next test comes at the upper envelope, which aligns with the $0.00000904 resistance zone.
The relative strength index sits in the mid-40s, indicating neither overbought nor oversold conditions.
Technical analysts note the lower Bollinger Band has stopped sinking while the center line holds steady.
SHIB recorded only 13 green days out of 30 over the past month with 7.93% price volatility.
The token has fallen 60.5% since starting 2025 at $0.00002115.
Some analysts maintain bullish divergence signals on longer timeframes, though near-term sentiment remains weak.
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Why It Matters
The technical setup represents SHIB's first organized price structure after weeks of steady losses.
Holding support above $0.0000084 is critical for any potential bounce.
Failure to maintain this level could push SHIB toward deeper support around $0.0000075.
The modest 6% upside target reflects limited near-term momentum rather than a major reversal signal.
Broader market conditions continue weighing on meme coins as Bitcoin dominance reaches 58.7%, limiting capital flows to altcoins.
SHIB's exchange reserves total 82.3 trillion tokens, representing 14% of circulating supply.
Recent whale activity shows mixed signals, with one address withdrawing 169 billion SHIB worth $1.49 million from Coinbase on December 5.
However, daily net inflows hit 760 billion SHIB, suggesting persistent sell-side pressure.
The Shibarium layer-2 network recently surpassed 1 billion transactions, though its total value locked remains near $1 million.
For the technical pattern to materialize, SHIB needs sustained buying pressure and a break above the 20-day simple moving average at $0.0000083.
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