Shiba Inu (SHIB), one of the most popular meme coins in the crypto world, is once again feeling the heat from a broader market downturn. Over the past week, its price has dropped nearly 6%, wiping out recent gains and trapping trillions of tokens in a tight price zone. The sell-off reflects growing investor caution and macroeconomic uncertainty that’s affecting the entire digital asset market.
Crypto Market Faces $298 Million in Liquidations
On Saturday, the global cryptocurrency market began the weekend with a steep dip. In just 24 hours, more than $298 million worth of cryptocurrencies were liquidated. Analysts attribute the pressure to broader economic concerns and traders rushing to secure profits after last week’s temporary surge.
Shiba Inu was not spared. The token is down 5.81% in the past day, currently trading around $0.0000142. The loss has extended a declining trend that began earlier in the week. Despite a strong move on May 12, where it briefly touched $0.00001764, the rally quickly lost steam as macro conditions worsened.
Five Days of Red Candles for SHIB
Since May 11, SHIB has recorded losses in five of the last six trading days. Each bounce has been met with heavy selling, with many investors exiting at the first signs of profit. This consistent pressure has brought the token dangerously close to a critical support level: $0.000014.
On Saturday, this token hit this level again, raising concern among investors and market watchers. Why does this price zone matter so much? Because an enormous number of Shiba Inu tokens are sitting within this range, waiting.
According to data from blockchain analytics firm IntoTheBlock, roughly 25.74 trillion SHIB tokens are currently held by 34,170 addresses in the narrow trading range between $0.000014 and $0.000015. These wallets are either at break-even or just below water. Many are now in wait-and-see mode, holding off on making any decisions until the market gives a clearer signal.
This cluster of tokens forms a key consolidation zone. If these holders decide to sell, either to cut losses or break even, Shiba Inu could face a sharp drop. On the other hand, if these addresses hold firm, this range could act as a strong support level.
The daily Relative Strength Index (RSI) is currently sitting exactly at 50, the neutral midpoint. This signals that the market is undecided, neither overly bullish nor bearish. It reflects the current tug-of-war between buyers hoping for a bounce and sellers fearing another leg down.
Bullish or Bearish? The Critical Battle Zone
The range between $0.000014 and $0.000015 has become SHIB’s battlefield. If the token manages to stay above the lower bound of this range, it could offer a solid base for a potential rebound. But if it falls below this zone, panic selling could follow, pushing prices even lower.
What’s at stake? Not just short-term profits. A deeper drop could break SHIB’s recent bullish structure and delay any meaningful recovery. Traders and long-term holders alike are now watching closely to see which side takes control.
The current downturn in Shiba Inu and the broader market comes amid increasing concerns about global economic conditions. Interest rate speculation, inflation data, and declining tech stock performance have all weighed on risk assets, including crypto.
Many investors who entered the SHIB market during the meme coin boom are now reassessing their strategies. With trillions of tokens essentially “stuck” at current levels, the decision by these holders, whether to sell or hold, could define the next phase of its price movement.
Could SHIB Rebound from Here?
Despite the recent decline, SHIB still has the potential to recover if buyers return with confidence. Past price behavior suggests that meme coins like SHIB often rebound sharply after testing major support zones.
For now, however, this coin is clinging to the edge of this crucial range. To move higher, it will need:
- Renewed buying interest
- Stronger sentiment in the broader market
- A shift in macroeconomic signals
In the short term, sideways trading may continue until a clear breakout, up or down, occurs.
Final Thoughts: SHIB at a Crossroads
With 25.74 trillion SHIB tokens effectively in limbo, the meme coin’s future remains uncertain. The narrow trading range between $0.000014 and $0.000015 is more than just a technical level—it represents the hopes and decisions of tens of thousands of investors.
Whether Shiba Inu breaks downward under selling pressure or rebounds on renewed optimism depends on both market dynamics and investor psychology.
One thing is clear: SHIB is at a crossroads. The next few days could determine whether it resumes its upward journey, or sinks deeper into bearish territory.
