Shiba Inu (SHIB), is now making significant technological strides to establish itself as a serious player in the crypto space. Most recently, the beta introduction of the Shib Alpha Layer has garnered attention, introducing cutting-edge privacy features through Fully Homomorphic Encryption (FHE). This development promises to expand Shiba Inu’s utility beyond hype and into real-world applications such as healthcare and finance, potentially transforming its ecosystem on the Shibarium blockchain.

Developed in collaboration with cryptography experts at ZAMA, the Shib Alpha Layer enables smart contracts to execute encrypted data without revealing sensitive information, enhancing privacy and security. This is a major breakthrough because it allows decentralized applications (dApps) to operate with greater confidentiality and compliance, a critical requirement for sectors handling private data. The Alpha Layer’s rollup technology also brings multiple RollApps into a unified interface on Shibarium, boosting both scalability and user experience.

Despite these promising innovations, Shiba Inu’s price has recently been under pressure. On the previous day, a large sell-off saw 211 million SHIB tokens dumped on the market, pushing prices toward weekly lows and rattling investor confidence. This massive sell volume has overshadowed the positive developments and placed the token’s price trajectory into question.

Current Price and Market Conditions

As of now, SHIB is trading around $0.00001171, marking a 1.36% dip in the last 24 hours and a sharper 12.68% decline over the past week. The coin’s market capitalization has slipped to approximately $6.9 billion, and daily trading volumes hover near $153 million, showing a slight 0.60% decrease. These figures indicate a cautious market mood amid ongoing selling pressure.

Technical analysis of SHIB’s price action on the 4-hour chart reveals that the token is struggling to climb above the 20-period Simple Moving Average (SMA) midline of the Bollinger Bands, currently near $0.00001194. The fact that SHIB is hugging the lower Bollinger Band suggests continued bearish momentum, as sellers appear to be dominating the market.

However, there are subtle signs that a recovery may be brewing. The price recently bounced from a low of $0.00001152, which hints at some buying interest returning at these levels. More importantly, the Relative Strength Index (RSI) currently sits at 42.30, edging upward from oversold territory. This rise suggests early bullish divergence, a technical signal that selling pressure might be easing and that the price could be poised for a rebound.

Key Levels to Watch

For traders and investors monitoring SHIB’s next move, the $0.00001194 mark is critical. A break and sustained close above this level would indicate a possible shift in momentum towards the bulls, potentially fueling a recovery rally. This would mark the first significant technical sign that the downtrend could be reversing.

Conversely, if the price fails to break above this resistance and instead falls below $0.00001137, the path may open toward the next major support level at the psychological zone of $0.00001100. A breach of this support could lead to further declines, deepening the current sell-off and intensifying bearish sentiment.

Looking Ahead: Balancing Technology and Price Action

While Shiba Inu’s recent price movements have been disappointing to some holders, the long-term outlook isn’t solely determined by short-term price fluctuations. The introduction of the Shib Alpha Layer signals a shift in strategy toward real utility, which could have a profound impact on the token’s value in the months and years ahead. Enhanced privacy features and scalable dApps may attract new users and developers, adding fundamental value that is often missing from crypto coins.

Nevertheless, market dynamics remain volatile, and investors should exercise caution. The large token sell-offs, coupled with weak price action, demonstrate that bearish sentiment still lingers. Buyers will need to confirm their strength by pushing SHIB above the mid-band of the Bollinger Bands and maintaining positive momentum.

Final Thoughts

Shiba Inu’s price is currently caught in a tug-of-war between innovation-driven optimism and selling pressure triggered by significant token dumps. While the RSI and bounce from support suggest a potential recovery may be forming, the token must overcome critical resistance levels to confirm a sustained uptrend. Investors should closely monitor the $0.00001194 and $0.00001137 levels, which will likely dictate SHIB’s short-term direction.

With its new privacy-focused technology and expanding ecosystem, Shiba Inu is well-positioned for long-term growth if it can navigate these immediate challenges. The next few weeks will be crucial in determining whether the recent sell-off marks a bottom or the start of a deeper correction.