Shiba Inu's Downward Spiral: Investors Watch for Critical Support Breakdown

The Shiba Inu (SHIB) token, an Ethereum-based memecoin, has shown signs of potential consolidation around the $0.000012 level amid low trading volume. Recent data and on-chain analytics suggest that SHIB may experience further downward pressure in the near term, with key technical and behavioral indicators highlighting the likelihood of a bearish scenario. The token currently trades at approximately $0.000011, with a 24-hour trading volume of $203.64 million and a market cap of $6.37 billion. The token’s price movement has lagged behind other prominent meme coins like Dogecoin (DOGE), BONK, and PEPE, raising questions about its performance in the broader market context [1].

Analysts have pointed to several technical indicators that support this bearish outlook. SHIB recently broke below critical support levels, with its 50-day and 200-day exponential moving averages forming a bearish crossover. The Chaikin Money Flow (CMF), a volume-weighted momentum indicator, has also turned negative, signaling reduced buying pressure. Additionally, the token’s holding time—the average period over which tokens are held—has dropped significantly, reflecting increased selling activity. These factors, combined with the token’s inability to hold above the $0.00001295 level, suggest that SHIB is in a consolidation phase that could extend until key support levels are tested [1].

On-chain metrics also reinforce the narrative of downward pressure on SHIB. Exchange reserves have hit monthly lows, indicating that a large portion of the circulating supply is no longer readily available for selling. However, the Spent Coin Age Bands suggest that selling pressure could intensify in the near future as older, less active coins re-enter the market. The token’s trading volume over the past seven days stands at $1.19 billion, down from $9.77 billion over the last 30 days, signaling a gradual decline in market participation. This drop in volume may be a precursor to a prolonged consolidation period as traders and investors await clarity on the token’s direction [1].

Despite the bearish trends, some analysts have noted that recent whale activity and on-chain data hint at potential reversals. Whale holders have been accumulating SHIB at a steady pace, and some reports indicate that top wallets have shown increased buying activity over the past week. A positive CMF reading in recent days has also raised hopes among traders that a short-term rebound could be on the horizon. However, these signals have not yet translated into meaningful price action, and the token remains under pressure from broader market sentiment [1].

Looking ahead, SHIB’s path will depend on several key factors, including whale behavior, broader meme coin sentiment, and potential catalysts such as major ecosystem updates. While the token has historically benefited from community-driven initiatives like token burns and Shibarium developments, the current market environment appears to be testing its resilience. If SHIB fails to reclaim key resistance levels and continues to experience outflows from top holders, further downward movement could become more likely. Traders and analysts are closely watching the $0.000012 level as a critical point of support, with a breakdown potentially leading to renewed bearish momentum [1].

Source: [1] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/en-de/price/shiba-inu)