Karla Barker 
Shiba Inu is showing early signs of a potential turnaround after months of selling pressure, but traders should remain cautious as the broader market downtrend persists.
Support Holds as Bearish Momentum Fades
On the daily chart, SHIB has stabilized just above a key support area near $0.0000040. The price has consolidated there for several days, which suggests buyers are trying to build a base after a prolonged decline. This is often a sign that selling exhaustion may be setting in.
The Relative Strength Index, or RSI, has also improved. It fell into oversold territory twice last month, dropping to 19.54 on June 5 and 21.44 on June 28. Now, it has recovered to 32.94. Historically, such moves have signaled that downside momentum is weakening. Volume has remained relatively low, too, which further hints that aggressive selling has eased.
However, the trend hasn’t flipped yet. SHIB continues to trade below a descending resistance line that has rejected every recovery attempt since May 11. Until that barrier breaks, a full reversal is not confirmed.
Key Resistance Levels to Watch
The most important level to watch is the descending trendline, currently around $0.00000451. A decisive break above this area would strengthen the case for a bullish shift. If that happens, the first target for taking profits sits at $0.0000051, an 18% rise from the current price of $0.0000043. The second take-profit zone is near $0.0000055. If momentum builds further, SHIB could even reach $0.0000066, which would be a 52% gain.
Still, these are just initial targets. If the broader crypto market recovers and bulls regain control, Shiba Inu could aim higher.
Downside Risks Remain
Despite these positive signs, bears still have the upper hand. The support at $0.0000040 could break, and if it does, SHIB may drop to lower levels. The first floor below current price is at $0.00000241, based on the 1.272 Fibonacci extension. That would be a 44% decline. The second floor sits at $0.00000155, the 1.414 Fibonacci level, which would mean a 64% crash from here.
So while there’s room for cautious optimism, the risk of further downside is real. Traders might want to wait for that descending trendline to break before getting too excited.