Shiba Inu (SHIB) declined 3.4% over the past 24 hours—significantly underperforming the broader cryptocurrency market, which posted a more modest 2.03% drop. The setback comes as a confluence of macro risk-off sentiment, whale-driven profit-taking, and a critical technical breakdown below key Fibonacci support levels converge to pressure the once high-flying meme token.
The retreat occurred against a backdrop of renewed caution across digital asset markets. With Bitcoin hovering near the psychologically crucial $90,000 mark without decisive breakout momentum, investor appetite for higher-risk altcoins has waned. Total crypto market capitalization slipped to $3.01 trillion, while Bitcoin dominance climbed to 58.47%, reflecting a flight to perceived safety. In this context, SHIB’s heightened volatility—evident in its steeper decline compared to Ethereum’s 2.8% drop and Dogecoin’s 2.1% fall—underscores its continued sensitivity to broader market swings. Compounding the pressure, the Crypto Fear & Greed Index now sits at 27, signaling “Extreme Fear,” while derivatives funding rates have surged over 336% month-over-month, further amplifying downward momentum.
Complicating matters further, on-chain data reveals signs of substantial profit-taking by large holders. A single-day inflow of 1.06 trillion SHIB tokens to centralized exchanges—the largest such deposit since March 2024—interrupted a weeks-long trend of net outflows. Historically, such spikes in exchange deposits precede distribution phases, where whales offload positions accumulated during quieter periods. This shift coincides with SHIB’s 7-day trading volume surging to $66.9 billion, its highest level since June, suggesting both heightened liquidity and potential liquidation pressure. Notably, these inflows follow a recent spike in active addresses—up over 800% just days prior—indicating that whales may have capitalized on short-term momentum to exit positions after successfully defending the $0.0000085 support zone earlier in the week.
From a technical perspective, the situation appears increasingly precarious. SHIB has decisively broken below the 23.6% Fibonacci retracement level at $0.0000083, a key psychological and algorithmic support. The token also slipped beneath its 7-day simple moving average at $0.00000847, with both the Relative Strength Index (RSI) hovering at 45—showing no oversold conditions—and the MACD histogram remaining firmly in negative territory. This combination has likely triggered algorithmic sell orders and prompted tactical exits by technical traders, potentially setting the stage for a deeper pullback toward the 38.2% Fibonacci level at $0.00000798, especially if Bitcoin falters below $89,000.
Despite the near-term bearish signals, not all indicators point downward. Exchange reserves for SHIB remain near multi-year lows—a historically bullish setup suggesting limited sell-side liquidity in the longer term. However, the immediate trajectory hinges on Bitcoin’s ability to stabilize and on whether SHIB can reclaim and hold above two critical thresholds: the broken $0.0000083 Fibonacci level and the 50-day exponential moving average at $0.00000869. A failure to do so could expose the token to a retest of its 2024 lows around $0.0000075.
In summary, Shiba Inu’s latest dip is less an isolated event and more a reflection of broader market dynamics, strategic whale behavior, and technical fragility. While its long-term fundamentals aren’t entirely undermined, the path forward demands either a decisive recovery in risk appetite or a convincing technical reversal—neither of which appears guaranteed in the current climate of uncertainty.
