Shiba Inu Faces Selling Pressure

The data speaks for itself: Shiba Inu is once again under substantial selling pressure, as indicated by both market and on-chain performance. Over 4.87 trillion SHIB tokens were transferred in a single day, marking one of the largest volume spikes this month, which raises concerns about the token’s immediate future.

Market Breakdown

The market chart shows that SHIB has decisively broken below the crucial 50 EMA level and is rapidly approaching the 200 EMA. As a result of the short-term uptrend breakdown, the price has gravitated closer toward significant support levels around $0.00001200, erasing several weeks’ worth of gains.

Bearish Momentum

According to the chart, a descending pattern may signify a more structural change in sentiment rather than just short-term profit-taking. Historical data reveals that spikes in transaction volume closely correlate with times of increased volatility, typically indicating distribution, with larger holders offloading significant positions.

Market Pressures

As macro pressures escalate, the seven-day average of 2.72 trillion SHIB, peaking at 4.87 trillion, suggests aggressive market movements. This may be due to whales withdrawing from the market or reallocating investments into more stable assets. The current bearish trend might not reverse soon, especially without bullish divergence — even though technical indicators like the RSI are nearing oversold territory.

Risk of Decline

The asset risks free-falling toward the $0.00001050 range if the critical support at $0.00001200 is breached. The continuation of this downward trend is supported by substantial SHIB transfers and the existing descending market structure, placing extra pressure on SHIB from both speculative and fundamental avenues.

Future Outlook

Unless SHIB can recover its lost moving averages and demonstrate strong buying support, the outlook remains bleak. The volume spike may have contributed to the crash, but it does not guarantee a recovery ahead.