Here's Why Shiba Inu Price Is Facing Further Drops
Shiba Inu (SHIB), the popular Ethereum meme, is facing heavy selling pressure as the broader cryptocurrency market continues to be negatively impacted by the downtrend in Bitcoin and major altcoins.
After hitting a low of $0.00001145 – its lowest since February 27 – SHIB recovered slightly to $0.00001199 during Wednesday's trading session. However, the current price is still 65% below its yearly high, indicating that bearish pressure remains strong.
Fundamental and technical factors
SHIB's weakness is not only due to market sentiment, but is also clearly reflected in technical indicators and on-chain data:
The MDIA (Mean Dollar Invested Age) index – an indicator that shows the average time each dollar of SHIB has not been moved – is falling significantly.
90-day MDIA dropped from 66 to 46.
365-day MDIA dropped from 205 to 143.
This is a clear sign of distribution, showing that long-term holders are starting to sell instead of accumulate.
The number of active addresses on the SHIB network has also dropped sharply, from nearly 20,000 in December 2023 to 3,350 – indicating a significant decline in interest and activity in the community.
The Shibarium Network – a highly anticipated layer 2 solution – also failed to maintain its momentum.
The total value locked (TVL) dropped from $6.4 million to just $1.91 million, far below other emerging projects such as Sonic or Berachain.
Technical analysis: Double top and death cross
On the 3-day chart, the price of SHIB has broken out strongly from the short-term uptrend:
SHIB has fallen from the December 2023 high of $0.00003345 to near $0.00001095, forming a double top – one of the most powerful bearish patterns.
The neckline of the double top is located at $0.00001090. A break of this level would confirm a deeper bearish signal for SHIB.
The current price is also below both the MA50 and MA200, and is likely to form a Death Cross – a negative technical indicator that usually signals a prolonged downtrend.
Upcoming scenario: Risk of breaking psychological support
With the current trend, SHIB is at risk of falling towards $0.00001000 – a key psychological level. If this level is penetrated, selling pressure could push the price down to $0.00000583, a low not seen since June 2023.
This price represents a decline of more than 45% from the current price, and shows that SHIB is entering a dangerous zone without supporting macro factors or positive news.
Summary: The Downtrend Is Not Over
Although SHIB remains among the most traded meme coins, technical indicators and on-chain data all agree on a bearish trend in the short term. If key supports such as $0.00001090 and $0.00001000 fail to hold, SHIB could continue to fall further in the coming time.
Investors should be cautious, monitor price action and confirmation signs before entering a position, especially in the current volatile market context
