invezz.com
Shiba Inu ($SHIB) is attempting a modest recovery on Wednesday after finding support around the critical $0.0000043 level earlier this week.
The dog-themed meme coin trades above $0.0000044 at the time of writing, supported by improving social and derivatives indicators.
Rising Social Dominance, a long-to-short ratio above one, and positive funding rates suggest traders are becoming more optimistic about $SHIB’s near-term prospects.
Technical indicators also show that bearish momentum is weakening.
However, the recovery depends on $SHIB maintaining support at $0.0000043 and attracting enough buying pressure to challenge the 50-day Exponential Moving Average (EMA).
$SHIB’s Social Dominance rises
Santiment’s Social Dominance indicator points to renewed interest in Shiba Inu.
The metric measures the percentage of cryptocurrency-related conversations focused on $SHIB across social media and other digital platforms.
An increase can indicate that the token is attracting more attention from traders and investors.
$SHIB’s Social Dominance has trended higher since August 16 and reached 0.016% on Wednesday.
The recovery suggests that Shiba Inu is regaining visibility after a period of weaker market interest.
Rising social activity can support short-term price momentum, particularly for meme coins, which are often highly sensitive to retail sentiment and online engagement.
However, increased discussion does not guarantee sustained demand. $SHIB will need a corresponding rise in buying activity for the improvement in social sentiment to translate into a stronger price recovery.
Shiba Inu’s derivatives metrics also reflect a gradual shift toward bullish positioning. According to CoinGlass, $SHIB’s long-to-short ratio stood at 0.99 on Wednesday, approaching the 1.0 level.
A reading below one indicates that traders hold slightly more short positions than long positions, suggesting they expect the price to dip.
However, the margin is narrow, meaning sentiment is only modestly bearish rather than strongly pessimistic. Nevertheless, the reading marks an improvement in recent days.
$SHIB’s funding rate also turned positive on Tuesday and reached 0.0087% on Wednesday.
Positive funding means traders holding long perpetual futures positions are paying those holding short positions. This generally indicates that bullish positions are more heavily represented in the market.
While the shift supports the recovery outlook, an excessively elevated funding rate could eventually increase the risk of long liquidations.
At current levels, the data primarily signals improving trader confidence.
Shiba Inu holds critical support at $0.0000043
Shiba Inu retested its daily support at $0.0000043 on Tuesday and attracted buying interest around the level.
$SHIB has since recovered above $0.0000044, making $0.0000043 the most important near-term support. Holding this level would preserve the recovery attempt and could encourage buyers to target higher resistance.
A daily close below $0.0000043 would invalidate the immediate bullish setup and signal that sellers have regained control.
Such a move could expose $SHIB to further losses, particularly if wider cryptocurrency market sentiment weakens.
If the $0.0000043 support remains intact, Shiba Inu could extend its rebound toward the 50-day EMA at approximately $0.0000046.
This indicator represents the first major technical obstacle for buyers. A decisive daily close above it would strengthen the short-term outlook and suggest that $SHIB is moving beyond a temporary relief bounce.
The Relative Strength Index stands at 45 and is approaching the neutral level of 50. Although the indicator remains slightly bearish, its recovery suggests that downward momentum is fading.
The Moving Average Convergence Divergence indicator reinforces this view. Its red histogram bars are becoming smaller, indicating that bearish pressure is gradually weakening.
Neither indicator has confirmed a complete bullish reversal.
Still, improving momentum, positive funding rates and rising social interest could support further gains if $SHIB holds above $0.0000043.