Shiba Inu Battles Bearish Trends: Key Support Levels in Jeopardy

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Shiba Inu (SHIB) is currently trading at approximately $0.000012, a significant drop from its earlier price of about $0.0002. This sharp decrease has alarmed investors, suggesting potential problems as the cryptocurrency struggles to maintain its value. Like many other digital assets, SHIB has been caught in a downward spiral due to a combination of bearish sentiment and marketwide liquidations.

Breaking Below Key Support Levels

SHIB recently broke below important support levels, indicating a clear downtrend. The meme coin’s price has fallen by 65% since its peak earlier this year, highlighting growing difficulties. Currently hovering near the $0.00001 level, a crucial psychological zone, SHIB faces mounting pressure.

_{SHIB/USDT Chart Source: TradingView}

A drop below this barrier could result in additional losses and possibly add another zero to its value, signaling further bearishness for investors. On-chain metrics paint a grim picture for SHIB. Prior to the price drop, more than 1.2 trillion SHIB were exchanged, indicating low transaction volume and an ongoing exodus of whales.

Additionally, a small number of wallets hold 73% of the SHIB supply, pointing to a high concentration of large holders. Despite 47% of holders still being profitable, the large outflows and weak purchasing pressure contribute to a bearish market outlook.

Potential For Recovery

Despite these challenges, there is still hope for SHIB. If market conditions stabilize, the community and the speculative nature of meme coins could drive a comeback. However, this would require a significant shift in sentiment and new funding. The current bearish trend emphasizes the need for a major change in attitude among investors to support a potential recovery.

Shiba Inu (SHIB) faces a challenging period as it trades near critical support levels and experiences significant selling pressure. The high concentration of large holders and ongoing outflows indicate a bearish outlook.