In a dramatic turn of events, the Shiba Inu (SHIB) market has witnessed a colossal 15.05 trillion tokens change hands within a single 24-hour period, a 61% surge in trading volume. This unprecedented activity comes amidst a period of significant price decline for the popular meme coin, leaving investors to ponder if a trend reversal is on the horizon.

Despite the flurry of trading, SHIB's price has taken a considerable hit, dropping 6.52% to approximately $0.00001055 in the last day and marking a 12% loss over the past week. This downturn is largely reflective of a broader cryptocurrency market sell-off, which has resulted in over $701 million in liquidations across the digital asset space. The market unease has been palpable, with 175,725 traders being liquidated in the last 24 hours alone, the majority of whom held long positions in anticipation of rising prices.

Shiba Inu's price has been on a steady decline since its recent high of $0.00001362 on June 11, with the majority of subsequent trading days closing in the red. The latest price drop has brought SHIB to a critical support level around $0.00001028, a zone that has previously attracted buyers and sparked a rebound in April.

On-Chain and Technical Indicators Flash Mixed Signals

The surge in trading volume is not the only metric raising eyebrows. On-chain data reveals a staggering 1,048% increase in inflows from large SHIB holders over the past seven days. This spike in "whale" activity, culminating in the 15.05 trillion SHIB movement on June 16, represents a seven-day and six-month high.1 Such significant movements by large holders are often interpreted as strategic positioning for a potential major price swing, fueling speculation of an impending reversal.

From a technical standpoint, the daily Relative Strength Index (RSI) for SHIB has fallen into oversold territory. This indicator suggests that the recent selling pressure may be exhausted, potentially setting the stage for a relief rally or a more sustained bounce.

However, analysts urge caution. The broader market remains weak, and continued sell-offs in the altcoin market could stifle any recovery attempts for Shiba Inu. The $0.00001000 mark is now being closely watched as a critical psychological and technical support level. A decisive break above key daily moving averages, specifically the 50-day at $0.0000134 and the 200-day at $0.0000163, would be required to signal a convincing bullish reversal and the potential start of a new uptrend.

For now, the crypto community remains on high alert. The massive influx of trading volume indicates that momentum is building for Shiba Inu. The critical question that remains is in which direction this momentum will ultimately break.#SHIB