Shiba Inu (SHIB) experienced a significant price decline, dropping over 7.5% within 24 hours and testing a critical support level near $0.00001240 amidst increased market volatility. CoinGlass data indicated a large accumulation of $942K in short positions around $0.00001306, outweighing the long liquidations and signaling a bearish outlook.
Meanwhile, whale activity surged dramatically as on-chain analytics from IntoTheBlock showed a 175.86% increase in SHIB transactions within the $100K–$1M range and a 147.79% increase in the $10K–$100K bracket. Conversely, retail investor transactions fell sharply, with the smallest transaction bands declining between 21.1% and 69.62%. This divergence suggests whales are buying the dip while smaller investors are exiting in panic.
Technically, SHIB remains below the 200-day EMA and the 50-day SMA, indicating a downtrend. Analysts warn that if SHIB closes below $0.00001240, it could experience an additional 18% decline. A recovery above this level might trigger a reversal and an 18% price bounce, reflecting prior price patterns.
Further market sell-offs contributed to this decline, with SHIB down 5.25% in 24 hours and 12.69% weekly, falling below major technical support levels. The broader crypto market liquidated $687 million, predominantly from long positions, including a notable $12.25 million BTC/USDT liquidation.
With 30.49 trillion SHIB tokens previously acquired in the $0.000012–$0.000013 range by over 64,000 addresses, the current price cluster is crucial. Key support levels reside at $0.000012 and $0.000008, while resistance remains strong around $0.000014 and $0.000019 where large quantities of SHIB were bought. Market participants are closely monitoring these levels to gauge SHIB's next movement.