Shiba Inu is trading near $0.000004929, down over 7.87% in the past 24 hours, while daily trading volume has remained elevated as sellers continue to dominate market activity. The meme coin h
Shiba Inu is trading near $0.000004929, down over 7.87% in the past 24 hours, while daily trading volume has remained elevated as sellers continue to dominate market activity. The meme coin has struggled to maintain bullish momentum amid broader weakness across the market, with recent price action pushing the SHIB price below a key support level that had held firm for months.
The breakdown has raised fresh concerns among traders, especially as derivatives activity continues to weaken and on-chain metrics point to growing sell-side risks. While short-term volatility remains high, the focus has now shifted to whether SHIB can reclaim its lost support zone or if the latest decline marks the beginning of another leg lower.
The weekly chart shows SHIB breaking below a major support area near $0.0000051, a level that repeatedly acted as a demand zone throughout 2026. The breakdown confirms the continuation of the prevailing downtrend and places the meme coin at its lowest levels of the current cycle. Unlike previous pullbacks that attracted aggressive buying, the latest decline has failed to generate a meaningful recovery. This suggests market participants remain hesitant to accumulate despite the lower prices.
The weekly RSI has fallen to a lower threshold, approaching oversold territory but still showing little evidence of a strong reversal. Meanwhile, the MACD remains below the signal line, indicating that bearish momentum continues to dominate. Besides, the levels are heading for a bearish crossover as the buying pressure fades. The combination of weak momentum and a confirmed support breakdown suggests sellers remain in control of the trend.
Derivatives data reveals another warning sign for SHIB bulls. Open Interest has fallen significantly over the past three months, dropping from above 80 million to nearly 50 million. Such a decline indicates traders are closing positions and reducing exposure rather than building new bullish bets.
At the same time, the volume-weighted funding rate has slipped into negative territory, highlighting growing bearish sentiment among derivatives traders. Together, declining Open Interest and negative funding rates suggest traders are not aggressively buying the dip. Instead, market participants appear to be reducing risk exposure while sentiment remains fragile.
Exchange reserves have recently increased, indicating that more SHIB tokens are being transferred onto exchanges. Historically, rising exchange balances are often associated with growing sell-side pressure, as investors typically move assets to exchanges when preparing to trade or liquidate positions.
The increase in reserves comes at a time when SHIB is already struggling to hold key support levels, making the trend particularly concerning for bulls. Unlike exchange outflows, which reduce the available supply for sale, rising reserves increase the amount of SHIB that can potentially enter the market.
While exchange inflows do not guarantee immediate selling, they often reflect weakening investor confidence and can amplify downside volatility during periods of market uncertainty.
The immediate focus remains on the broken support zone near $0.0000051. A successful recovery above this level could invalidate the recent breakdown and trigger a relief rally from oversold conditions. Such a move would be the first sign that buyers are returning to the market.
On the other hand, continued trading below support would strengthen the bearish case and increase the probability of a deeper correction in the coming weeks.
Shiba Inu has entered a critical phase after breaking below a key support zone. Technical indicators and derivatives data suggest bears remain firmly in control, while weakening market participation continues to weigh on sentiment. The recent increase in exchange reserves further strengthens the bearish outlook by signaling a potential rise in sell-side pressure. Unless SHIB quickly reclaims the lost support area and attracts fresh demand, the risk of further downside remains elevated.
