In a significant downturn affecting the cryptocurrency market, Shiba Inu (SHIB), the world’s second-largest meme token by market capitalization, experienced a sharp decline alongside broader market trends. The token dropped approximately 5%, moving from $0.000012888 to $0.000012188 within a 24-hour window. This decline led to over $1 million being liquidated from leveraged bets, predominantly long positions, indicating a market sentiment that had previously leaned bullish.
As the price fell, key resistance was established around the $0.00001237 level, identified during periods of high-volume liquidation. On the other hand, support was observed at the $0.00001197 threshold. The recent price action marked a critical downside break of a contracting triangle, a technical formation characterized by trendlines connecting lower highs and higher lows. This breakdown could signal further declines toward the June 22 low of $0.00001004.
Trading data from CoinDesk indicated that the volume experienced a surge, amounting to 5.29 trillion tokens transacted during this breakdown, which many analysts are interpreting as an institutional liquidation event. The bearish resolution of SHIB’s recent range play confirms a negative shift in market dynamics.
From September 21, 15:00 to September 22, 14:00, SHIB faced significant selling pressure, retreating further amid intense trading. A particularly dramatic drop occurred around 06:00 on September 22, when prices fell to $0.000011975, contributing to the establishment of a solid resistance level at $0.000012373. This movement solidified critical support at $0.00001197 and revealed strong buying interest at this price point. Conversely, prices faced ongoing resistance near $0.00001290, which has proved formidable during early trading sessions.
Meanwhile, amid SHIB’s downturn, its main competitor, Dogecoin (DOGE), suffered an even larger loss of over 8%. This disparity prompted a rebound in the SHIB-DOGE trading pair from its record lows. Recent technical indicators, such as the daily MACD histogram, are showing signs of a potential bullish shift, suggesting that SHIB could maintain its outperformance against DOGE in the near future. However, analysts caution that the overall outlook remains bearish unless the downward trendline that has persisted since March 2024 is broken.
As market participants monitor these developments, attention remains focused on key levels of support and resistance, as well as potential shifts in trader sentiment that could define the next moves for these prominent meme tokens.
