Shiba Inu Coin Price Dips 6% but Whale Moves & Bullish Pattern Hint at $0.000045 Breakout

Shiba Inu (SHIB) is under bearish pressure today, May 17, after dropping by 6% to trade at $0.0000141 at press time. Amidst the decline, three bullish signals have emerged suggesting that the price of Shiba Inu Coin may be headed for a bullish reversal to $0.000045.

Shiba Inu Price Drops 6% Amid Meme Coin Pullback

Shiba Inu Coin price has dropped by 6% in 24 hours to trade at its lowest level in one week. The dip follows a massive spike in long liquidations, as Coinglass reveals more than $2M in long SHIB liquidations in the last two days.

However, the decline is not unique to Shiba Inu as the entire meme coin market has retraced. Data from CoinGecko shows that the meme coin market cap has fallen by around 2% in 24 hours, with all top meme coins recording a steep selloff.

Despite the bearish headwinds impacting SHIB price, several metrics, including whale moves, technical outlook and exchange data, reveal that a breakout rally is imminent.

Whale Transactions Signal Looming SHIB Breakout

On-chain platform Santiment reveals a spike in whale activity, which historical patterns suggest has always preceded notable gains for Shiba Inu coin price. The transaction count for whale addresses holding more than $1M SHIB tokens nearly doubled between May 8 and May 15.

If whale activity continues to rise this week, this top meme coin may rebound, as historical data shows that a higher whale transaction count has often been bullish for price. For instance, in November 2024, whale activity surged as Shiba Inu reached a yearly high of $0.000033.

Double-Bottom Pattern Hints at Rally to $0.000045

The technical outlook also suggests that Shiba Inu coin price is on the verge of a breakout rally to $0.000045. A double bottom pattern on the weekly chart also supports a bullish Shiba Inu price prediction as the trend reverses from a downtrend to an uptrend.

SHIB coin has defended the support level at $0.0000107, and if it can make a strong bounce from here to the first neckline resistance of $0.000033, the uptrend will push it to $0.000045.

The AO histogram bars tease at a looming SHIB breakout after the metric flipped green, albeit being negative, to indicate that the bearish momentum is weakening. However, the weekly RSI is struggling to break out above 50, showing weak buy-side activity. A breakout above 50, as the AO bars also cross above the zero line, will confirm the upward move to $0.000045.

Derivatives market data from the Binance exchange supports the above technical outlook as traders build up their long positions towards Shiba Inu coin. According to the long/short ratio, 73% of futures traders on this exchange have opened long positions.

This long bias alongside the uptick in whale transactions count and the formation of a double-bottom pattern shows that despite the recent pullback, Shiba Inu coin price has the potential to reach $0.000045. Hence, the 6% pullback may be a temporary setback before buyer accumulation supports the next bullish leg.