Shiba Inu (SHIB) fell 7% in a single day because the crypto market faced heavy liquidations price greater than $1.2 billion. The selloff began as Bitcoin (BTC) slipped over 6% to hit $104,000. The move got here amid renewed concerns in regards to the stability of U.S. regional banks and broader risk aversion in global markets, steering investors away from volatile assets reminiscent of cryptocurrencies.
SHIB price breaks support as selling deepens. Is this a “buy the dip” opportunity or will it sink even further?
SHIB/USD price chart. Source: CoinMarketCap
The query now’s: what happens next for SHIB? Is the downturn over or is that this just one other set-up for a deeper decline? Let's analyze.
SHIB price breaks support as selling deepens
TradingView data shows that SHIB fell to around $0.0000097, falling below the $0.000010 support zone that has been in place since mid-August. The each day chart confirms a bearish continuation pattern after the token failed to take care of momentum above $0.000012 earlier this month.
SHIB/USD 1-day price chart with RSI and EMAs. Source: TradingView
The RSI near 33 indicates oversold conditions, but the shortage of strong buying volume suggests the market is just not yet ready for a reversal. SHIB price is now facing resistance at $0.000011, while the following major support is around $0.0000085. A decisive decline below could extend losses towards $0.0000078, last seen in early July.
Their Open Interest (OI) chart shows that SHIB futures positions fell from $120 million to $95 million through the selloff.
A decline in each OI and price means traders are closing positions as an alternative of adding latest short positions. This pattern shows forced liquidations and position exits, not latest bearish bets.
Open SHIB interest. Source: CoinGlass
The funding data supports the identical view. The funding rate turned negative at -0.007%, showing that short positions now outweigh long positions. When OI falls and funding goes negative at the identical time, it often signifies that leverage is being faraway from the system – an indication that panic is high and liquidity is low.
Is this a “buy the dip” opportunity or will it sink further?
The SHIB price chart stays bearish. The token is trading well below its 20-, 50-, and 100-day moving averages and momentum indicators are showing limited buying pressure. If the token stays above $0.0000090, it could stabilize within the short term and retest to $0.0000108-$0.0000110. Failure to defend this level could extend the decline to $0.0000085 and even $0.0000078 if Bitcoin continues to weaken.
Bitcoin’s next move will likely determine the consequence. A rebound above $110,000 could push Shiba Inu higher, while continued stress below $108,000 would keep the pressure on memecoins.
The sell-off wasn't just limited to SHIB. Memecoin market capitalization fell 8% in 24 hours to about $52.9 billion. Dogecoin (DOGE) and PEPE also slipped between 8-9%.
Top Memes Tokens by Market Cap. Source: CoinMarketCap
This synchronized decline shows that the downturn is sector-wide and never attributable to SHIB alone. During periods of risk aversion, traders typically exit speculative tokens first, making memecoins the primary victims of broader liquidations.
