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Shiba Inu is on the verge of a catastrophic collapse right now, and if the bearish trend persists, the token might deal investors a devastating blow with losses possibly reaching quadrillions of tokens.
More than 836.84 trillion SHIB tokens or about 85% of the total supply are currently out of the money, meaning that their holders are sitting on losses at the current price of $0.000013, according to the most recent on-chain data. There is a huge risk that a further decline in price will lock in enormous unrealized losses, which would be a real setback for the larger SHIB community.
The chart supports this pessimistic view. Having just momentarily surpassed the breakout line, SHIB dropped back below it after failing to hold a crucial support level. Now that a fakeout has been verified, the asset is trading below the 26th, 50th, 100th and 200th major exponential moving averages.
Usually this alignment indicates a strong bearish trend with minimal indications of a reversal. With only 11.63% (114.55 trillion SHIB) of the supply in profit, the low in the money ratio further raises concerns. This indicates that the great majority of holders are present in the water.
Alex DovbnyaPanic selling is frequently sparked by such circumstances, particularly if SHIB breaks below the $0.0000125 local support level, which it is already vying for. If that breakdown occurs, SHIB may plunge into a freefall toward the $0.000010 range or lower, sending billions more SHIB into loss territory and dealing investors a devastating psychological blow.
Gamza KhanzadaevThe only remedy for the tense situation would be a strong bullish reversal supported by volume, which is not happening right now. Without it, there is a very real chance of a quadrillion-token loss event, which could short-term ruin SHIB's recovery prospects.
Vladislav Sopov
Dan Burgin