"Shiba Inu (SHIB) Falls 8.6% Last Week, Testing Support Level: 'Technical Indicators Stay Positive Despite Drop'"

# Shiba Inu (SHIB) Tests Crucial Support After Weekly Decline Shiba Inu (SHIB) is probing the critical support level of $0.0000126 after an 8.6% drop within the last week, as observed on May 6, Korea time. The token has fallen from $0.00001375 to $0.0000126 recently, echoing broader economic uncertainty in the cryptocurrency market. CoinDesk Research reports that this downtrend coincided with a significant increase in trading volumes due to intensified selling pressure in early May. Despite this short-term weakness, on-chain data indicates growing institutional confidence in SHIB’s long-term potential. In April 2025, 109 new wallets holding over $1 million in SHIB were created, increasing the total number of whale wallets to 860. The market sentiment currently leans towards cautious optimism, with SHIB's futures open interest almost doubling from $97 million to $190 million in April. Meanwhile, the development of Shibarium, SHIB's Layer-2 blockchain, is ongoing. Improvements such as enhanced transaction processing speeds and the onboarding of new validators could lay the groundwork for future price movements. # Technical Analysis: Key Observations Despite Downtrend Recent price action has shown SHIB posting lower highs and lower lows consistently. A significant sell-off on May 3 pushed the token below $0.0000130, aligning with spikes in trading volume. The $0.0000126 support level has been tested repeatedly over the past 48 hours, highlighting its importance as a horizontal support zone. Short-term resistance is identified at $0.0000129, with Fibonacci retracement levels indicating a need for further stabilization before any significant recovery. On May 6, SHIB briefly dipped to the $0.0000126 support but staged a sharp 10% recovery in a V-shaped rebound. Following a steep sell-off on high volume, SHIB saw strong buying interest, driving the price back up. Currently consolidating near $0.00001276, declining trading volume could signal temporary exhaustion. If the current pattern of higher highs continues, the potential for further gains remains. Shiba Inu has shown increasing signs of stabilization despite its recent correction and heightened volatility. Supported by long-term investor confidence and technological advancements, the token may see further upside if it consistently holds above the $0.00001274 resistance level.