SHIB's Key Support Zone Faces Pressure from Soaring Short Positions

SHIB's price has been testing key support around $0.0000052 as it remains within a narrowing structure. This level is crucial during the latest recovery phase, and buyers have been defending recent support while selling pressure gradually cools. The market is caught between lower resistance and rising support.

The daily chart shows a prolonged decline following the May peak near $0.0000066. Lower highs and lower lows continued through June and early July, driving price toward $0.0000041-$0.0000043, where buyers established support. The structure changed during late July after volume expanded sharply, leading to a rally toward $0.0000059 before another pullback developed.

Two trendlines now converge across the recent trading structure: one descending from the $0.0000062 rejection and later lower highs, and another rising from higher lows formed since the August bottom. The price of SHIB at the time of writing is approximately $0.00000533 per day, slightly above the 9-day SMA around $0.00000521 and the 9-day DEMA around $0.00000530.

Short-selling activity declined steadily after July's surges, with daily short-sale volume remaining below one million shares in most sessions since then. However, outstanding short positions have climbed above 11 million, a slow increase from 2024 and 2025 levels of approximately 6-8 million.