Shiba Inu Hangs by a Thread as Chart Signals 50% Breakdown

Shiba Inu has surrendered roughly a quarter of its market value over the past month, hovering this morning near $0.0000113.

Market structure on the weekly chart paints a stark picture: sellers keep pressing prices lower, yet the meme-token stubbornly clings to that same support line, creating a descending triangle that normally precedes a deeper slump. A decisive close beneath this shelf would open the door to the $0.0000054 area—a zone last visited before the 2021 mania—effectively halving today’s price.

Momentum indicators reinforce the bearish script. The relative strength index sits in the high-30s, signaling persistent distribution rather than bargain hunting. Meanwhile, Shiba Inu floats more than 50 percent below its 50-day simple moving average, and that moving average caps the triangle’s down-sloping ceiling. Until price reclaims that barrier, short-term sentiment stays negative.

On-chain signals look no healthier. Shibarium, the project’s layer-two network, saw total value locked tumble from about $3.1 million in mid-May to under $1.9 million, according to DeFiLlama—nearly a 40 percent retreat that hints at fading user engagement. Derivatives traders have also turned defensive: funding rates tracked by Coinglass slipped to their lowest reading in a month as speculators piled into short positions.

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Not even a dramatic surge in token burning could jolt enthusiasm. The community torched roughly 12 million SHIB in the last day, a 7,200 percent leap in the burn rate, yet price action barely flinched. Without a corresponding uptick in demand, supply cuts alone are unlikely to arrest the slide.

Taken together—bearish chart pattern, waning network activity, and increasingly pessimistic derivatives flows—Shiba Inu appears vulnerable to a sharp breakdown. Unless buyers mount a swift defense above $0.0000113 and reclaim the 50-day average, the meme-coin’s next significant move may well point lower rather than higher.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.