Shiba Inu Drops 4%: What Is Going On?

Despite forming a golden cross, Shiba Inu SHIB/USD is down 4% over the past 24 hours.

Analysts say the pullback may be temporary, with strong technical signals and long-term bullish fundamentals building beneath the surface.

Trader Notes: Bitcoinsensus highlighted that SHIB has been consolidating within a right-angled descending broadening wedge, a structure that often precedes major upside moves.

The token is currently near the lower support of this pattern, which presents a potential high conviction buy zone for long-term spot positions.

If the wedge resolves upward, the high-timeframe target is $0.000115, representing a 720% potential gain.

InvestingHaven points to SHIB holding above key support at $0.0000133, which aligns with their projected bottom for 2025.

A potential W-reversal pattern is forming, suggesting a trend shift and targeting $0.0000666 on breakout.

They maintain a multi-year bullish outlook, especially as Ethereum strength often correlates with SHIB performance.

Despite short-term downside, several analysts are maintaining a neutral-to-bullish stance, viewing current conditions as consolidation before a potential breakout.

Statistics: Shiba Inu's fundamentals are quietly strengthening. According to Shibburn, over 23.6 million SHIB was burned in a single transaction, reducing supply and bolstering the long-term outlook.

Shibariumscan data shows daily transactions on Shibarium dropped to a low of 1.14 million after May 17 but rebounded to 1.51 million as of May 22, signaling renewed activity.

IntoTheBlock data shows Shiba Inu's large transaction volume expanded by 45.4% in a single day, while daily active addresses were down 6.8%. Transactions greater than $100,000 were up from 75 to 105.

Community News: In a X post on May 19, Shibarium Updates unveiled details on Shib Alpha Layer, a modular rollup framework compatible with ZK and Optimistic rollups, built as part of ShibOS.

Though still under development, it's already attracted institutional interest, including from the UAE Ministry of Energy.

This layer is expected to become a foundational component of Shiba Inu's infrastructure, enabling scalable and affordable Web3 applications across a globally distributed network.

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