Shiba Inu (SHIB) dropped 10% over the past week, mirroring the decline seen across other meme coins. This recent downturn led to a massive $11 trillion SHIB in on-chain realized losses, marking the highest level since November 2024. Is this a sign of full-blown capitulation, or a setup for a bullish reversal?
At the time of writing, SHIB trades around $0.0000129 with a 24-hour volume of $142 million, according to CoinMarketCap. The meme token remains nearly 85% below its all-time high.
📉 Record-Breaking Loss Volume — Capitulation Signal?
On-chain data shows a sharp spike in transactions where investors are selling SHIB at a loss. The total daily volume of these losing transactions surged to 10.97 trillion SHIB, signaling a wave of panic selling and position abandonment by weaker hands.
While this surge in realized losses adds to the bearish pressure, it may also suggest the market is nearing a bottom — especially if these weaker hands are being flushed out.
🔁 SHIB Consumed Age Spikes — Long-Term Holders Exit
Another key metric, Consumed Age, also spiked dramatically. This indicates that even long-term holders have begun moving or liquidating their tokens — a classic sign of capitulation and fear. Ironically, such moments often precede strong price rebounds.
For example, on May 5, SHIB surged from $0.000013 to $0.000017 shortly after Consumed Age spiked. A similar scenario unfolded in late March, with SHIB gaining over 7% in days following the metric's surge.
📊 Technical View: Is a 400% Rally in Sight?
Technical analysis suggests Shiba Inu may be nearing a breakout point. According to recent chart patterns, SHIB is testing a key resistance level that, if breached, could trigger a new uptrend. Fractal patterns from late 2024 hint at the potential for up to a 400% rally, bringing SHIB back toward $0.000045.
🧠 Summary: Panic or Opportunity?
Shiba Inu’s recent slide may reflect broader crypto market weakness, but on-chain signals show possible signs of capitulation — often a precursor to recovery. If historical trends repeat, SHIB could soon begin climbing back with renewed momentum.
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