After a 7.4% Drop in Seven Days, SHIB’s Market Sentiment Holds a Cautious Optimism

Shiba Inu (SHIB) is weathering recent market volatility with notable resilience, as institutional interest in the meme coin intensifies. Despite a 7.4% weekly decline, April saw a surge in large-scale accumulation, with 109 new millionaire wallets recorded — bringing the total to 860.

SHIB’s price action reflects the broader uncertainty gripping crypto markets. The token is currently trading near critical support at $0.0000127 after sustained selling pressure, especially during early May. CoinDesk Research highlighted that major pullbacks have coincided with elevated trading volumes, underscoring heightened market activity.

Still, long-term holders and institutions appear undeterred. On-chain accumulation has persisted even as SHIB’s April gains — just 7% — fell short of Bitcoin’s sharp move toward $95,000.

Futures data also points to increasing confidence. SHIB’s open interest nearly doubled in April, jumping from below $97 million to nearly $190 million. At the same time, development continues on Shibarium, the project’s Layer-2 scaling solution, with upgrades aimed at boosting performance and making it easier for new validators to join.

Key Technical Insights:

SHIB remains locked in a short-term downtrend, with a pattern of declining highs and lows and heavy volume spikes marking each dip — most notably on May 3.
The $0.0000127 level has formed a sturdy support floor, tested repeatedly over the last 48 hours.
Resistance has now shifted to $0.0000129, with technical models indicating a possible pause in downward momentum.
A sharp drop to $0.0000126 occurred in just nine minutes between 13:31 and 13:40, accompanied by a 22 million SHIB selloff. But strong demand at that level sparked a rapid recovery.
A powerful V-shaped bounce followed, with SHIB climbing nearly 10% between 13:57 and 14:01.
The token is currently consolidating above $0.00001276. While trading volumes have cooled, a pattern of rising lows since 14:40 suggests that bullish momentum may still be building — contingent on support at $0.00001274 holding firm.

Though SHIB faces technical headwinds, growing institutional support, elevated futures activity, and ongoing network development hint at underlying strength. The coming days may be key in determining whether SHIB can convert this base into a launchpad for recovery.