Shiba Inu Charts Bullish Reversal as ShibDAO Launches and Rug Pull Probe Unfolds

By Tatevik Avetisyan 8 Min Read

On June 1, 2025, the 4-hour chart for SHIBA INU to U.S. Dollar (SHIB/USD) on Coinbase created a descending channel pattern.

SHIBA INU RSI Rebounds From Oversold Zone
SHIBA INU Descending Channel Breakout Setup. Source: TradingView.com

A descending channel forms when the price moves between two downward-sloping parallel trendlines, often signaling controlled selling with a potential upside breakout.

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If this pattern confirms with a breakout above the upper red trendline, SHIB may climb 30% from the current price of $0.00001277 to approximately $0.00001839.

Right now, SHIB trades below the 50-period Exponential Moving Average (EMA), which stands at $0.00001374. That shows short-term bearish pressure remains in place.

However, price action near the lower boundary suggests potential for a bounce. Volume shows brief surges, hinting that bulls may be accumulating at these levels.

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If buyers regain momentum and push the price above the channel, the structure would flip bullish, targeting the $0.00001839 area.

SHIBA INU RSI Rebounds From Oversold Zone

On June 1, 2025, the 4-hour Relative Strength Index (RSI) chart for SHIBA INU (SHIB/USD) showed signs of possible recovery after touching oversold territory.

SHIBA INU RSI (14) Indicator, 4-Hour Chart. Source: TradingView.com
SHIBA INU RSI (14) Indicator, 4-Hour Chart. Source: TradingView.com

The RSI value stands at 35.20, while its 14-period moving average hovers at 29.66. This divergence indicates a slight upward shift in short-term momentum.

Previously, the RSI dropped below 30, entering the oversold zone. That move signaled strong selling pressure. However, the recent bounce above 30 suggests weakening bearish strength.

At the same time, RSI has not yet crossed above the 50 mark, which separates bearish from bullish momentum. Until that happens, any bullish move remains uncertain.

Still, the slight rise in RSI while the price sits near a descending channel’s lower boundary adds weight to a potential reversal, especially if volume confirms renewed interest.

SHIBA INU MACD Crossover Signals Weakening Bearish Momentum

On June 1, 2025, the 4-hour Moving Average Convergence Divergence (MACD) chart for SHIBA INU (SHIB/USDT) showed signs of a possible bullish shift.
SHIBA INU MACD (12, 26, 9) Indicator, 4-Hour Chart. Source: TradingView.com
SHIBA INU MACD (12, 26, 9) Indicator, 4-Hour Chart. Source: TradingView.com

The MACD line, currently at –0.00000040, has crossed slightly above the signal line, which sits at –0.00000041. This crossover indicates weakening bearish momentum and suggests a potential trend reversal if upward pressure builds.

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Before this, the MACD histogram printed consistent red bars, confirming sustained selling pressure through late May. However, the latest bars turned light red and then green, reflecting reduced downside strength and the beginning of buyer activity.

The MACD crossover near the zero line adds significance. If momentum continues building, SHIB may confirm a bullish breakout, especially when combined with other indicators like the Relative Strength Index and descending channel setup.

Still, traders may wait for stronger green histogram bars and MACD movement above zero to confirm sustained upside strength.

SHIBA INU BBTrend Breaks Into Bullish Zone After Months of Downtrend

On June 1, 2025, the BBTrend (Bollinger Band Trend) indicator for SHIBA INU (SHIB/USDT) flipped strongly bullish, printing a value of +8.98.

SHIBA INU BBTrend (20, 50, 2) Indicator, Daily Chart. Source: TradingView.com
SHIBA INU BBTrend (20, 50, 2) Indicator, Daily Chart. Source: TradingView.com

A positive BBTrend suggests increasing upside momentum and growing volatility expansion in favor of bulls. This marks a clear reversal from the extended negative values seen since mid-March. During that earlier phase, the BBTrend indicator remained deep in bearish territory, with values falling below –40. That stretch confirmed sustained downside pressure.

However, in early May, the histogram began climbing gradually toward the zero line. On May 19, the trend flipped positive for the first time in weeks. Since then, bullish strength has grown consistently, with the indicator peaking above +16 before pulling back slightly to its current level of +8.98.

If the indicator continues holding above zero, it may confirm bullish expansion. But any drop back into negative territory could invalidate this setup.

Shiba Inu Launches ShibDAO While Investigating Rug Pulls in Its Ecosystem

Meanwhile, on June 1, 2025, the Shiba Inu development team launched a new governance system called ShibDAO while also confirming an internal investigation into past rug pulls on the Shibarium network.

The team aims to address concerns about scams and restore trust within the community as it pushes forward with decentralization efforts.

On May 31, Davinci.Shib, a core contributor to Shibarium, announced that Shiba Inu developers had started an internal probe into past rug pulls. These incidents allegedly involved actors inside the ecosystem who profited from the Shibarium infrastructure while publicly discrediting it.

Shibarium Rug Pull Investigation Announcement. Source: X/@DavinciShib
Shibarium Rug Pull Investigation Announcement. Source:X/@DavinciShib

Davinci confirmed that the team will release verified findings to the public. If no conclusive evidence emerges, they will avoid further action. The developers aim to maintain transparency while avoiding speculation.

Meanwhile, Shiba Inu’s marketing lead, Lucie, warned the community about increasing scam attempts. She highlighted that attackers may hijack social media accounts to spread misinformation or promote fraudulent projects tied to the ecosystem.

Lucie Warns of Scammers and Misinformation in Shiba Ecosystem. Source: X/@LucieSHIB
Lucie Warns of Scammers and Misinformation in Shiba Ecosystem. Source: X/@LucieSHIB

ShibDAO Introduced With Tiered Governance Model

As the investigation continues, the Shiba Inu team launched ShibDAO on May 29. The new governance framework enables the community to vote on proposals, upgrades, and ecosystem direction.

ShibDAO introduces four separate DAOs, each handling a key part of the ecosystem:

  • SHIB DAO manages community initiatives.

  • BONE DAO handles protocol development.

  • LEASH DAO resolves internal disputes.

  • TREAT DAO funds decentralized application (dApp) innovation and growth.

Users can also create sub-DAOs by claiming a Shib Name (SNS). These smaller governance groups will allow members to organize around specific goals such as DeFi, digital art, or public services.

Shiba Inu Launches ShibDAO Governance Portal. Source: Shib.io
Shiba Inu Launches ShibDAO Governance Portal. Source: Shib.io

Bury 2.0 Upgrades Staking System

Alongside ShibDAO, the team rolled out Bury 2.0—a new staking mechanism. Users can now stake SHIB, BONE, LEASH, or TREAT tokens to earn voting power. The system increases influence based on the size and duration of the stake.

“Stake SHIB, BONE, LEASH, or TREAT to gain influence. The more & longer you stake, the more voting power you earn,”

the Shibarium update stated.

ShibDAO Governance Goes Live with Bury 2.0 and DAO Factory. Source: X/@Shibizens
ShibDAO Governance Goes Live with Bury 2.0 and DAO Factory. Source: X/@Shibizens

The dual launch of ShibDAO and Bury 2.0 marks Shiba Inu’s transition from a meme-based asset to a structured Web3 ecosystem. The project now focuses on community governance, platform sustainability, and decentralized development.