A fresh wave of selling pressure has pushed Shiba Inu (SHIB) lower, with the token declining nearly 2% in 24 hours to the $0.0000058 range. The move extends a short-term downtrend that erased recent recovery attempts and forced SHIB below a closely watched price threshold.
Macro Headwinds and Liquidation Cascade
Across the broader market, most cryptocurrencies recorded losses on daily and weekly timeframes. Rising U.S. Treasury yields and a stronger dollar reduced appetite for risk assets, prompting capital outflows from speculative positions. Crypto-linked equities, including Coinbase and Strategy, also declined in premarket trading.
Derivatives data underscored the scale of the correction, with over $268 million in liquidations within a single day. Long positions accounted for the vast majority, with roughly $222 million wiped out as prices moved lower. This imbalance highlighted how traders positioned for upside faced rapid losses as momentum reversed.
Volume Decline and Technical Breakdown
Shiba Inu's decline coincided with a notable drop in trading activity. Daily volume fell by over 16%, signaling reduced participation from both retail and institutional traders. This decline in liquidity limited the token's ability to absorb selling pressure, accelerating its downward movement.
Technically, SHIB has dropped below its 50-day moving average, a level that previously acted as resistance during earlier recovery attempts. This breakdown reinforces bearish sentiment. Price action shows sellers remain in control, especially after the token failed to sustain momentum above the $0.000006 mark.
The asset reached intraday lows near $0.00000583, confirming sustained selling interest at higher levels. Market participants remain cautious amid ongoing macroeconomic uncertainty. If support levels fail to hold, SHIB remains vulnerable to further downside.
Key Support Levels and Recovery Triggers
Looking ahead, immediate support sits near $0.00000562, with a deeper floor closer to $0.000005. A break below these levels could extend losses. However, a recovery above the 50-day moving average would shift short-term sentiment, bringing price targets around $0.0000065 and $0.000007 back into focus.
Shiba Inu's latest drop reflects a combination of technical weakness and broader market pressure. While key support levels remain in focus, a sustained recovery will depend on improved sentiment and stronger participation.