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Shiba Inu (SHIB) experienced a huge selloff, where 1,000,000,000 tokens were sold off on exchanges in 24 hours. The increased selling volume caused a dramatic price decline that breached key support levels. SHIB was trading below the $0.000010 mark at the time of writing and is increasingly becoming bearish.
The Shiba Inu selloff was also accompanied by a high trading volume, which showed possible capitulation of investors. This bullish momentum of the coin has been defeated by a small margin and SHIB is approaching the level of 0.000009.
Technical indicators, including the Relative Strength Index (RSI), indicate that the asset is nearing the oversold levels, where RSI stands at 34.47.
Shiba Inu price action indicates a death cross pattern, where the 50-day moving average crosses under the 200-day moving average. This technical pattern usually indicates a downtrend and long-term bearish trends. Analysts report that this formation is often followed by a prolonged period of poor performance for the market.
The $0.000009 level has become a major support. A breakdown below this point could cause further losses and send SHIB lower. The state of the current markets shows that the liquidity is low and the market is volatile, and the prices are not likely to recover until the market experiences low volumes of buying.
Also Read: Shiba Inu vs Little Pepe: Which Meme Coin Will Grow More in 2025?
Weak holders may tend to liquidate positions, and this adds more chances of an additional downward move. The sell-off will probably lead to prolonged low SHIB liquidity, which will restrict the upside price pressure. The recovery of investor attraction and massive purchases is highly influenced by the short-term market perspective of SHIB.
Market players are advised to exercise caution, as the trend is negative. Traders are monitoring the levels of support and trading volume to determine whether there is any possibility of a recovery or further decline. It could pose a challenge for the Shiba Inu to establish its place in the short term without the advantage of high demand.
The recent sell-off demonstrates the instability that is typical of meme coins and presupposes a bad time for SHIB owners. It is recommended that traders and investors exercise great caution regarding the risk and be prepared to face the possibility of prolonged bearish markets within the next few weeks.
