Shiba Inu has dropped below the $0.0000077 threshold on Thursday, extending its recent decline. The meme coin faces mounting pressure from multiple fronts. Large holders are reducing their positions significantly. Derivatives markets show weakening interest. Technical indicators point to further downside potential.
The cryptocurrency traded at $0.00000754 at the time of writing. This represents a continuation of the bearish trend that began earlier in January. SHIB was rejected at a key resistance level on January 5. The token has lost over 18% of its value since that rejection.
Whale Activity Signals Bearish Shift
Data from Santiment reveals substantial selling by major SHIB holders. Three distinct whale categories have reduced their holdings dramatically between January 20 and Thursday. Addresses holding between 100,000 and 1 million tokens decreased their positions. The same pattern emerged for wallets containing 1 million to 10 million tokens. Large holders with 10 million to 100 million SHIB also participated in the sell-off.
Combined, these whale cohorts offloaded 32.17 billion tokens. This selling activity has intensified downward pressure on the price. The distribution pattern suggests wealthy investors lack confidence in near-term price appreciation.
Futures market data reinforces the bearish sentiment. Open Interest in SHIB derivatives contracts has fallen to $92.69 million on Thursday. This marks a significant decline from the January 6 peak of $145.56 million. The steady erosion of Open Interest indicates traders are closing positions. Reduced participation in the derivatives market often precedes further price weakness.
Technical Breakdown Points to Extended Decline
The technical picture offers little comfort for bullish traders. SHIB encountered strong resistance at the 50% retracement level of $0.0000099 in early January. This level represents the midpoint between October’s high of $0.0000130 and low of $0.0000067. The rejection at this zone triggered the current downtrend.
Early week recovery attempts proved short-lived. The token gained 4.26% through Tuesday but failed to maintain momentum. Wednesday brought renewed selling pressure. Thursday’s decline pushed SHIB to new local lows.
Key momentum indicators confirm the negative outlook. The Relative Strength Index stands at 41 on the daily timeframe. This reading falls below the neutral 50 mark. The indicator’s downward trajectory suggests bearish momentum is accelerating rather than slowing.
The Moving Average Convergence Divergence indicator flashed a bearish crossover on January 17. This signal remains active with expanding red histogram bars below the zero line. The MACD configuration typically indicates that selling pressure will persist in the near term.
Continued weakness could drive SHIB toward Sunday’s low of $0.0000073. A decisive break below this support would open the door to deeper losses. The next major support sits at the October 10 low of $0.0000067. This level represents a crucial zone for the meme coin.
Breaking below $0.0000067 would mark a significant technical failure. Such a move could trigger additional liquidations and accelerate the decline. Bulls need to defend current levels to prevent a more severe correction.
Recovery scenarios exist but face substantial obstacles. Any bounce would likely encounter resistance at the 50-day Exponential Moving Average. This moving average currently sits at $0.0000081. Reclaiming this level would require strong buying interest and a shift in market sentiment.
Source: https://coinpaper.com/14122/shiba-inu-price-prediction-shib-drops-below-0-0000077-as-whales-dump-32-billion-tokens
