The meme coin Shiba Inu (SHIB) has come under significant selling pressure after breaking down from a bearish "head and shoulders" pattern — a move that could send the token tumbling by as much as 28% to $0.000009. This technical breakdown is further compounded by a whale moving over 100 billion dormant SHIB tokens to Binance, stirring concerns among investors.
At the time of writing, SHIB trades at approximately $0.0000122, reflecting a 4.5% daily drop. Trading volume has surged by nearly 90% to $266 million, likely driven by increased sell-side activity.
Bearish Trend Gaining Momentum
The daily price chart shows the formation of a classic head-and-shoulders pattern — typically a sign of an upcoming trend reversal. In this case, the pattern suggests a shift from bullish to bearish. SHIB has broken below the neckline of the formation, signaling a possible slide to $0.000009, which would mark the token’s lowest point since January 2024.
The rising ADX indicator, which measures the strength of a trend, confirms the potential for continued bearish momentum. Simultaneously, RSI has begun trending downward, indicating growing selling pressure.
This development aligns with earlier analyses that hinted at a possible 22% pullback if a smaller bearish pattern emerged. Now, a much larger signal is in play.
Whale Activity Fuels More Fear
Adding to the uncertainty, a dormant whale wallet has just moved 105 billion SHIB tokens to Binance after three years of inactivity. According to Arkham data, these tokens had not moved in years, making their sudden transfer a red flag for a possible dump.
Meanwhile, over 11 trillion SHIB tokens are currently held at a loss, signaling a potential wave of investor capitulation. If that occurs, the token could sink further before finding a local bottom.
Conclusion: Shiba Inu at a Critical Crossroads
SHIB is at a tipping point. The technical breakdown, whale movement, and soaring sell volumes all point toward heightened risk for holders. Unless the trend reverses soon, SHIB may see a further 28% crash, hitting price levels not seen in months.
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