Shiba Inu’s price is showing early signs of a potential structural shift after defending its yearly low with a strong technical signal. Following weeks of sustained selling pressure, a bullish engulfing candle has formed at a well-defined daily support level, suggesting that buyers are beginning to reclaim control at this critical price point.

This technical development occurs as the Shiba Inu ecosystem continues to expand its utility. The project recently launched a new debit card, allowing users to spend SHIB and earn rewards, which helps broaden the token’s use case beyond speculation. However, traders are now focused on whether this technical bounce has the strength to initiate a broader recovery.

A Potential Shift in Market Structure

The bullish engulfing candle is a significant signal because it appeared at a support area that has historically served as a last line of defense against deeper price corrections. Its successful retest and the subsequent strong buying response provide the first clear indication that bullish momentum may be returning. For this to be more than a temporary relief rally, the move needs to be supported by sustained volume and follow-through from buyers.

A genuine trend reversal isn’t confirmed by a single signal. To validate a true structural change, SHIB must break its recent bearish pattern by establishing a sequence of higher highs and higher lows. Without this confirmation, the current bounce risks being just a short-term reaction within a larger downtrend.

Key Price Levels to Watch

If the bullish momentum continues, analysts are watching two key areas of resistance that could serve as the next major targets. The first is the value area low, which represents the bottom of the range where most recent trading has occurred. Above that lies the Point of Control (POC)—the price level with the highest volume of trading activity, which often acts as a strong magnet for price.

A rally into these zones would be a significant step in a corrective push. How the price reacts upon reaching these liquidity-heavy areas will likely determine whether SHIB has enough strength to fuel a more substantial breakout or if sellers will regain the upper hand.

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