Despite a 7.4% Drop in One Week, SHIB’s Market Sentiment Remains Cautiously Positive

Despite continued price turbulence across crypto markets, institutional interest in Shiba Inu (SHIB) appears to be growing, with April seeing the creation of 109 new millionaire wallets — a signal of long-term confidence even as prices retreat.

SHIB has come under pressure recently, dropping 7.4% from its recent highs and now hovering around critical support at $0.0000127. According to CoinDesk Research’s technical model, volume surges have consistently accompanied major selloffs, particularly during early May’s steep decline.

Still, blockchain data paints a more resilient picture. April brought SHIB’s total number of $1 million+ wallets to 860, even though the token’s 7% monthly gain lagged behind Bitcoin’s rally toward $95,000. This divergence suggests that institutional players may be accumulating in anticipation of future growth.

Sentiment across SHIB markets remains cautiously optimistic. Futures open interest nearly doubled last month, rising from under $97 million to close to $190 million, reflecting growing appetite for leveraged exposure. Meanwhile, Shibarium — SHIB’s Layer-2 blockchain — continues to evolve, with improvements aimed at boosting throughput and simplifying validator participation. These developments may support SHIB’s fundamentals heading into the second half of 2025.

Technical Landscape

• SHIB’s chart reveals a prevailing downtrend, marked by lower highs and lower lows, intensified by sell volume spikes, especially on May 3rd when prices broke below $0.0000130.
• The $0.0000127 level has emerged as critical horizontal support, tested several times over the past two days.
• Immediate resistance is now seen at $0.0000129, while Fibonacci retracement levels suggest a potential for stabilization before any significant recovery.
• In a volatile stretch from 13:31 to 13:40, SHIB sharply dropped to $0.0000126 amid a 22 million token volume spike. However, strong demand at this level triggered a rapid V-shaped recovery.
• Between 13:57 and 14:01, SHIB rebounded nearly 10% from its lows, supported by a surge in bullish momentum.
• Since then, SHIB has consolidated above $0.00001276. Volume has tapered off, indicating a pause in market activity, but the emergence of higher lows since 14:40 hints at possible further upside — provided the $0.00001274 support continues to hold.

While short-term volatility remains a risk, the ongoing institutional accumulation, strong technical support, and continued Shibarium development suggest that SHIB could be positioning for a more constructive phase ahead.