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The Shiba Inu (SHIB) price continued to face downward pressure on Thursday as holders sold off their positions amid a broader cryptocurrency market downturn. SHIB dropped to $0.00001275, marking its lowest level since May 9, and is now 28% below its May peak. The meme coin has struggled to maintain momentum in recent weeks as weakening demand and investor exits contribute to ongoing underperformance.

On-Chain Data Highlights Bearish Sentiment

On-chain metrics reveal that Shiba Inu’s network realized profit/loss (NPL) has remained in negative territory for several months. The NPL is calculated as the average profit or loss of all coins that change addresses daily, derived from the difference between the price of the last movement and the new transaction price. A negative NPL indicates that coins are being sold at a loss, underscoring a bearish market sentiment.

Additionally, whale activity has exacerbated the sell-off. Data shows that whale holdings have declined from 748 trillion tokens in January to just over 718 trillion tokens currently. At the same time, the supply of SHIB on exchanges has been steadily increasing, signaling heightened selling pressure.

Declining Spot Market Volume

The decline in Shiba Inu’s price has been accompanied by a drop in its spot market trading volume. Over the past 24 hours, SHIB recorded just $141.8 million in daily trading volume. Comparatively, other meme coins like Dogecoin and Pepe posted significantly higher volumes, with $764 million and $1.08 billion, respectively. This disparity highlights a waning interest in Shiba Inu relative to its peers.

Technical Analysis: Bearish Indicators

From a technical analysis perspective, Shiba Inu’s price chart reveals a bearish trend. The daily chart shows that SHIB peaked at $0.00001762 on May 11 during a broader cryptocurrency rally. Since then, the price has declined to $0.00001275, breaking below the lower boundary of an ascending broadening wedge pattern.

The token has also fallen below both the 50-day and 100-day Exponential Moving Averages (EMAs), further reinforcing a bearish outlook. The Relative Strength Index (RSI) remains above the oversold zone, indicating that there is still room for additional downside movement.

Key Support and Resistance Levels

Given the current market setup, further capitulation is possible. Sellers may target the next critical support level at $0.000010, which represents the lowest point from April 7. To invalidate this bearish outlook, SHIB would need to break above the 200-day moving average at $0.00001570, signaling a potential reversal in sentiment.

Investors should monitor these key levels closely as the market continues to react to broader crypto trends and macroeconomic factors.

Takeaways for Investors

For those considering Shiba Inu, it’s essential to stay informed about market sentiment and on-chain metrics. Here are a few tips:

  • Track whale activity and exchange supply trends to gauge selling pressure.
  • Monitor key support and resistance levels for potential entry or exit points.
  • Pay attention to trading volume as an indicator of market interest and liquidity.
  • Use technical analysis tools like moving averages and RSI to assess potential price movements.

As the cryptocurrency market evolves, understanding these factors can help investors make more informed decisions about their portfolios.

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