Shiba Inu Repeats Signal That Preceded a 60% Crash
Shiba Inu (SHIB) is down and showing technical signals that could indicate the start of a prolonged bearish cycle.
The memecoin has struggled to escape the selling pressure that has gripped the market in recent days, resulting in significant losses. At the time of this analysis, SHIB had fallen 7.4% over the past 24 hours.
This weekly performance also shows losses exceeding 10%. The outlook isn’t promising, and many traders and investors wonder if the worst is yet to come. The following analysis suggests that may be the case.
Death Cross Threatens Shiba Inu
Shiba Inu has been in a downtrend since May 15, when it lost support from the 200-day exponential moving average (EMA) at $0.0000155. Since then, it’s fallen more than 15%, today breaking below the 50-day EMA at $0.0000130.
This move wasn’t unexpected, considering the “death cross” that formed in February — a bearish EMA crossover that signaled a trend reversal. Now, a new death cross is forming on the 4-hour chart, potentially opening the door to further losses.
The last time this pattern appeared, in December 2024, SHIB lost over 60% of its value in just 100 days. If history repeats itself, the memecoin could slide to support levels at $0.0000125, $0.0000115, and $0.0000105.
Such a move would represent an additional drop of up to 20% from the current price.
On-Chain Indicators Confirm Bearish Outlook
On-chain data also paints a bleak picture for Shiba Inu. Coinglass’s Exchanges Long/Short Ratio shows overwhelming dominance of sell orders — in the last 24 hours, sell orders have exceeded buy orders by more than $25 million.
Additionally, buyers have dominated total liquidation flows this month, showing that many long positions have been forced to close. This behavior discourages new investors and increases selling pressure, making a reversal even harder.
If this pressure continues, SHIB may continue its downward trajectory, with the loss of key supports increasingly likely.
