Shiba Inu Slips Below Key Support as Selling Pressure Builds

Shiba Inu (SHIB) slipped below the $0.0000077 level on Thursday after extending losses from the previous session, signaling that bearish sentiment continues to dominate the market. The pullback comes as holders increase selling activity, adding pressure to price action while participation in the derivatives market weakens. Together, these factors suggest that downside risks remain elevated for the meme coin in the near term.

On-chain data reinforces the bearish outlook. Santiment’s Supply Distribution shows a clear reduction in large SHIB holders, indicating that whales are offloading their positions. Wallets holding between 100,000 and 1 million, 1 million and 10 million, and 10 million and 100 million SHIB collectively shed around 32.17 billion tokens between January 20 and Thursday. This steady distribution by large holders has increased sell-side pressure and weighed on price stability.

At the same time, derivatives market data points to fading trader interest. SHIB’s futures Open Interest dropped to about $92.7 million on Thursday, down sharply from its January 6 peak near $145.6 million. The consistent decline in Open Interest reflects reduced speculative activity and lower conviction among market participants, a pattern that often aligns with bearish continuation rather than an imminent reversal.

Bearish Momentum Dominates SHIB Price Outlook

From a technical perspective, SHIB remains under pressure after being rejected at the 50% Fibonacci retracement level near $0.0000099 earlier this month. Since that rejection, the token has corrected by more than 18%, briefly attempting a modest recovery early in the week before failing to sustain upward momentum. At the time of writing, SHIB is trading around $0.0000075, hovering just above recent lows.

If the current downtrend persists, price action could revisit Sunday’s low near $0.0000073, with a decisive break opening the door to deeper losses toward the October 10 low around $0.0000067. Momentum indicators support this scenario, as the daily Relative Strength Index sits at 41, below the neutral 50 level and trending lower. The MACD has also remained in bearish territory since a negative crossover in mid-January, with expanding red histogram bars reinforcing the downside bias.

A recovery scenario would require SHIB to regain strength and push higher toward the 50-day exponential moving average near $0.0000081. Until that level is reclaimed, however, the broader technical and on-chain signals suggest that bears remain firmly in control of SHIB’s short-term trajectory.