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On-chain data indicates major ramifications for the future of the asset, placing Shiba Inu at a pivotal moment. As the market continues to show bearish trends, the whopping 67 trillion SHIB The support level – which is highly correlated with high trading volumes and market stability – is under threat.
The daily chart shows that SHIB is struggling to stay above important support levels. The asset has lost its grip on the 50 EMA, a crucial support level, and is currently trading near $0.0000222. The 200 EMA, which is usually the final hurdle for bullish investors, is now dangerously close to where SHIB is trading. SHIB could erase a significant portion of the gains from its previous uptrend if it loses this level, which could signal an impending decline towards $0.0000204 or even lower.
On-chain data further contributes to this alarming story. Whaling or institutional investors are not interested, as shown by the sharp decline in large trading volumes. Additionally, according to profitability measures, the majority of SHIB holders are currently out of the money, further contributing to the fall.
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As important support levels are broken, panic selling can worsen, creating a cascading effect. There is still some hope for SHIB despite the bearish setup. Speculative buying could be attracted by a possible recovery from the 200 EMA, particularly if SHIB moves into oversold territory on indicators such as the RSI. In the event of such a rebound, the 50 EMA at $0.0000250 and $0.0000300 would be the first resistances to watch. In addition to serving as a psychological barrier, the 67 trillion SHIB level is a technical and fundamental indicator of the asset.
If this level disappears due to persistent selling pressure, SHIB could see further declines, testing investors’ patience. However, a recovery is still possible if the SHIB manages to maintain its stability and attract new buyers at these lower levels. Investors can determine the next direction of movement by closely monitoring volume and important support zones.