SHIB Faces Bearish Reversal Despite Brief Speculative Surge

Shiba Inu (SHIB) recently experienced an 8% spike in Open Interest, initially suggesting bullish momentum. However, market sentiment has since reverted to neutral, highlighting the fragility of its recent gains. A false breakout from a lower timeframe channel last week further underscored this volatility. Technical indicators now point to a concerning descending triangle pattern, signaling a potential bearish reversal. Liquidation data suggests an imminent 9% drop, with the $0.0000142 level emerging as a critical support. As of May 29, 2025, SHIB is trading at $0.00001439 USDT. Investors should remain cautious amid these mixed signals.

Shiba Inu Sees Speculative Surge Amid Bearish Technical Signals

Shiba Inu’s 8% Open Interest spike initially hinted at bullish momentum before market sentiment reverted to neutral. The memecoin’s false breakout from a lower timeframe channel last week underscored the fragile nature of recent gains.

Technical indicators now paint a concerning picture - a descending triangle pattern threatens bearish reversal, with liquidation data suggesting an imminent 9% drop. The $0.0000142 level emerges as critical support; a breach WOULD confirm structural bearishness.

While moving averages retain some bullish bias, weakening momentum reflects in SHIB’s inability to surpass the $0.000017 resistance. The Chaikin Money Flow’s neutral position and flat OBV suggest a market in equilibrium, awaiting the next catalyst.

DeFi Boom Lifts Shibarium TVL to New Highs

Shiba Inu’s Layer-2 network, Shibarium, is witnessing a quiet but significant resurgence in decentralized finance (DeFi) activity. The total value locked (TVL) on the platform has surged past $4.5 million this week, marking a 14.2% increase from $3.94 million just a month ago. Fresh capital inflows and growing confidence in the ecosystem’s DeFi offerings are driving this upward trajectory.

Data from DeFillama reveals a 1.30% uptick in Shibarium’s TVL over the past 24 hours, pushing it to new monthly highs. TVL, a critical metric in DeFi, reflects the amount of crypto assets committed to protocols like decentralized exchanges (DEXs), lending platforms, and staking services. The steady rise suggests sustained user engagement rather than speculative blips.

Built to facilitate faster and cheaper transactions for the shiba inu community, Shibarium is now gaining traction in its DeFi layer. The platform’s growth underscores broader trends in the DeFi space, where Layer-2 solutions are increasingly capturing market share.