The cryptocurrency market faces turmoil as Shiba Inu (SHIB) takes a hit, losing a staggering 116 billion tokens in just 48 hours. Is the biggest crash in the history of this meme coin on the horizon?
According to exchange platform data, more than $1.04 million in long positions on Shiba Inu have been liquidated within just two days. This figure illustrates the excessive optimism of traders prior to this unexpected correction, which saw the token lose more than 5% of its value.
Key takeaways include:
Shiba Inu has broken a major technical channel: a symmetrical triangle on its daily price chart. This type of pattern often triggers extreme volatility upon breakout, and this time, the breakout was bearish.
For technical analysts, the breach of the lower trendline indicates a loss of buyer control. Moreover, the 50 and 100-day EMA moving averages, which were supposed to act as support, were breached downward without resistance.
In English-speaking markets, where Shiba Inu (SHIB) regularly features in the top 10 most traded cryptocurrencies, its current collapse raises questions about the sustainability of speculative demand. The critical support levels at $0.00001180 and $0.00001120 are under pressure, and the plummeting trading volume makes an immediate rebound unlikely. If this trend continues, SHIB could lose most of the gains it has accumulated since 2025.
This massive liquidation of 116 billion tokens in 48 hours illustrates a genuine crisis of confidence. Two scenarios are possible: a quick recovery fueled by a technical rebound, or a continued downward spiral towards the lowest levels of 2025, or even beyond. In this context, investors should prioritize rigorous risk management and maintain a fundamental approach, beyond the hype surrounding meme coins.
Take advantage of the potential technical rebound of Shiba Inu (SHIB) and seize a buying opportunity before a possible upward reversal. Here’s a buying guide for Bitget:
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