- Shiba Inu (SHIB) dropped to $0.0000116, its lowest level in four months, before recovering slightly to $0.0000141—a 19.91% decline in one day.
- Liquidations totaled $7.2 million, with SHIB’s Open Interest in futures contracts falling 41.64%, signaling waning market confidence.
- Key indicators like the RSI (24) and Funding Rate (-0.0207) reflect strong bearish sentiment, but SHIB could recover if support at $0.000012 holds.
As the crypto market nosedived over the past 24 hours, Shiba Inu (SHIB) wasn’t spared. The popular memecoin dropped to a four-month low of $0.0000116 before staging a slight recovery. At the time of writing, SHIB was trading at $0.0000141, reflecting a 19.91% drop on the daily chart. Weekly and monthly performance isn’t much better, with SHIB down by 20.21% and 42.19%, respectively.
Why Is Shiba Inu Down Today?
The sudden decline in SHIB’s price can largely be attributed to panic selling driven by bearish investor sentiment. According to AMBCrypto’s analysis, many traders are offloading their positions in a bid to minimize losses. Meanwhile, those who had profitable positions have cashed out to lock in gains, exacerbating the selling pressure.
This trend is evident in futures trading activity. Data from Coinglass shows that SHIB’s Open Interest (OI) in futures contracts dropped by a staggering 41.64% to $165.51 million. A decline of this magnitude suggests that confidence in SHIB’s price stability has deteriorated, with traders pulling out en masse.
source: CoinGlass
Liquidations and Technical Indicators Confirm Market Fear
The market’s panic is also reflected in a wave of liquidations. Over $7.2 million worth of long positions were liquidated, forcing many traders to exit their positions prematurely. Some were hit by margin calls, while others voluntarily closed trades to prevent further losses.
Technically, the pressure is confirmed by key indicators:
- Relative Strength Index (RSI) has plunged from 39 to 24—deep into oversold territory—indicating that sellers have complete control.
- Trading volume surged as sell orders flooded the market. This is further backed by a declining Chaikin Money Flow (CMF), which dropped to -0.11, signaling strong outflows from SHIB.
- Bearish sentiment is also evident in SHIB’s Funding Rate, which has turned negative. The Aggregated Funding Rate fell to -0.0207, suggesting that traders expect further downward pressure.
What’s Next for SHIB?
With the current wave of panic selling and heightened liquidations, Shiba Inu is at risk of further declines. If bearish momentum persists, SHIB could fall to $0.000012 in the near term. Should this support level fail, the next target is $0.00001088, a key psychological level.
On the flip side, if market sentiment stabilizes, SHIB may attempt a recovery. A successful rebound could see the memecoin retest $0.000016 and, with enough buying pressure, aim for $0.00001780.
Final Thoughts
For now, SHIB holders are in a tough spot. The memecoin’s fate will largely depend on whether the broader crypto market can shake off its current bearish grip. Until then, traders are keeping a close watch on support and resistance levels, as well as sentiment shifts, to gauge the next big move.
