Shiba Inu is staring down a precarious setup as the market drifts deeper into bearish territory. The price has slipped below key moving averages, and a looming death cross is threatening to solidify the downtrend even further. On the hourly chart, SHIB is trading around 0.00001123 USDT, sandwiched under the 50 EMA, 100 EMA and 200 EMA. This stacked resistance is a textbook recipe for continued weakness.
Technically, the asset is primed for a death cross, when the shorter-term moving average (usually the 50 EMA) crosses below the longer-term 200 EMA. This is a widely watched bearish signal that often precedes sharp sell-offs. Traders should be alert: once this cross is confirmed, it could trigger another wave of capitulation as stop losses get hit and sentiment sours further.
Beyond the chart, on-chain and exchange signals paint an equally bleak picture. According to the token summary data, 67% of holders are currently underwater, a huge red flag for potential panic selling. Large transaction volume over the last seven days stands at $105.5 million but is trending lower, indicating waning interest from whales. Net network growth, large transaction participation and concentration metrics are all flashing bearish signals. The overall sentiment gauge has tilted to “mostly bearish,” with four out of six core indicators negative.
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Community engagement is also fading. Telegram member counts slipped 0.39% in the past week, reflecting deteriorating enthusiasm among retail holders. When a meme coin like SHIB loses both on-chain strength and social momentum, the risk of a deeper slide becomes impossible to ignore.
Bottom line: Shiba Inu is dangerously close to confirming a death cross, which historically foreshadows extended price declines. Add in negative on-chain signals and sagging community metrics, and the probability of further downside is high. Investors should brace for potential volatility and be prepared for the possibility that SHIB could revisit or even undercut recent lows if support does not materialize soon.
