Shiba Inu price defends yearly lows as engulfing candle signals structural shift

Shiba Inu price defends its yearly low with a bullish engulfing candle, signaling early signs of structural change and setting the stage for a potential move toward higher value areas.

Shiba Inu (SHIB) has posted a strong bullish engulfing candle directly at the yearly low, signaling a significant shift in market structure after weeks of sustained bearish pressure. This reaction occurred at a well-defined daily support level, which has now been retested and confirmed, giving traders their first meaningful indication that buyers are reclaiming control.

Adding to its growing momentum, Shiba Inu has launched a new debit card that lets users spend SHIB while earning rewards, further expanding the token’s use case. The developing structure now highlights key value area targets as SHIB attempts to build a broader recovery phase.

Shiba Inu price key technical points

• Bullish engulfing candle forms at the yearly low, signaling initial strength from buyers at a critical support level.
• Value area low and point of control (POC) are the next major upside targets if momentum continues.
• Market structure requires higher highs and higher lows before a full bullish shift can be confirmed.

SHIBUSDT (1D) Chart, Source: TradingView

The bullish engulfing candle that formed at the yearly low represents a major structural signal for SHIB, particularly given the significance of this support area. This level has historically served as the final line of defense before deeper corrective phases, and its successful retest reinforces the idea that bulls are stepping in with conviction.

The reaction from this zone creates an opportunity for a larger corrective rally, provided that buyers maintain pressure and volume remains supportive.

Current market structure shows the early stages of what could become a meaningful reversal, but the sustainability of this bounce depends heavily on bullish influxes. Without continued strength, the move may remain a short-term corrective reaction rather than the beginning of a broader trend reversal.

To confirm a genuine structural shift, SHIB needs to produce consecutive higher highs and higher lows, signaling a transition away from its established bearish sequence.

If bullish momentum continues, the following trade locations to watch are the value area low and the overall point of control, both of which represent significant resistance and liquidity zones. A rally into these regions would be consistent with a mid-trend corrective push and could determine whether SHIB has the strength to sustain a deeper breakout.

This comes as SHIB absorbs heavy outflows while holding steady for a potential swing, adding further importance to how the price reacts at these upcoming levels.

What to expect in the coming price action

If bullish volume continues to build, SHIB is positioned to extend toward the value area low and point of control. However, a full bullish confirmation requires structurally higher highs and higher lows above current resistance levels.