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The data speaks for itself: Shiba Inu is once again under a lot of selling pressure, suggests both market and on-chain performance of the asset. More than 4.87 trillion SHIB tokens were transferred in a single day, according to on-chain data. This is one of the month's largest volume spikes and certainly concerns the token's immediate future.
The market chart shows that SHIB has decisively broken below the crucial 50 EMA level and is moving more quickly toward the 200 EMA. The price has moved closer to important support levels around $0.00001200 as a result of the short-term uptrend breakdown, which has erased weeks worth of gains.
According to the chart, developing a descending pattern bearish momentum may be a more structural shift in sentiment rather than merely short-term profit-taking. From a historical perspective, the spike in transaction volume corresponds closely to times of increased volatility and typically indicates distribution, with large holders unloading sizable positions.
As macro pressures increase, the seven-day average of 2.72 trillion SHIB with a peak of 4.87 trillion suggests aggressive movement, perhaps due to whales pulling out of the market or shifting capital into more stable assets. Furthermore, the current trend may not immediately reverse due to the absence of bullish divergence — even though technical indicators like the RSI are approaching oversold territory.
The asset runs the risk of free-falling toward the $0.00001050 range if the critical support at $0.00001200 is broken. A possible continuation of the downward trend is supported by enormous SHIB transfers and the descending market structure. Right now, SHIB is pressured both speculatively and fundamentally.
Unless SHIB recovers the lost moving averages and strong buying support appears on the road ahead, it is probably going to continue to be rough. Although the volume spike may have contributed to the crash, it does not ensure a recovery.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team