Shiba Inu at Critical Support: Will $0.0000085 Hold or Lead to Deeper Losses?

Sean Williams
shiba_inu

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  • Shiba Inu is approaching a critical support level at $0.0000085, which has held firm multiple times in 2023.
  • Weak demand, reflected in falling futures activity and spot trading volume, suggests a bearish outlook for SHIB.
  • The next few days are crucial—if the support zone fails, SHIB could see a decline to $0.0000058.

Shiba Inu (SHIB) is currently at a critical juncture, with the token trading close to a key support zone that has held strong multiple times in recent months. As market sentiment weakens and futures activity shows signs of fatigue, traders are keeping a close eye on the next move. This situation could set the stage for either a bearish breakdown or a rebound toward higher levels.

Key Support Level Under Pressure

After reaching a peak in early November, Shiba Inu has been on a sharp decline, dipping toward the $0.0000085 support level. This zone has been significant, offering resistance and support on multiple occasions throughout the year—October 10, November 4, and November 16 all marked notable points where buyers defended this level. However, recent price action has shown a growing bearish trend, with SHIB slipping below its 50-day and 200-day exponential moving averages (EMAs). Additionally, the token has now entered the Ichimoku cloud, which signals weakening upward momentum.

Futures Activity Signals Weak Demand

One concerning indicator for Shiba Inu’s future prospects is the drastic decline in futures open interest. At its peak in July, futures contracts on Shiba Inu reached nearly $330 million in open interest. However, this number has dropped to around $72 million, indicating a clear shift away from speculative trading. Many traders have become more risk-averse following a devastating liquidation event in mid-October, which wiped out billions from the crypto market. The reduction in open interest suggests that many traders are waiting on the sidelines, unsure of the market’s next move.

Declining Volume Reflects Caution in the Market

Along with the drop in futures activity, spot trading volume has also plummeted, further signaling diminishing demand for Shiba Inu. Daily trading volume has decreased from over $1.5 billion in early October to just around $134 million. This sharp decline in volume reflects waning interest from both short- and long-term holders. The decline is compounded by rising competition from newer meme tokens, particularly on the Solana blockchain, which have attracted traders seeking fresh opportunities.

Also Read: Shiba Inu (SHIB) 2025 Price Forecast: Potential Breakout, Key Levels & ROI Insights

The $0.0000085 support level will likely remain a crucial battleground for Shiba Inu. If buyers fail to defend this zone, SHIB could see a further decline toward the $0.0000058 mark, a target suggested by the pattern of the descending triangle. However, if the support holds and buyers regain control, a potential bounce could offer hope for a price recovery.

As it stands, Shiba Inu’s future largely depends on whether the market’s sentiment turns bullish or if the bears maintain their grip on the token. The next few days will likely determine SHIB’s short-term trajectory, with traders eagerly watching for any signs of strength.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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