VISI.NEWS | BANDUNG – Shiba Inu (SHIB) has suffered a sharp 11% decline in the past 24 hours, erasing much of its recent gains and triggering a wave of liquidations across the market.

The drop followed a failed breakout attempt earlier this week, where SHIB briefly rallied but failed to hold key resistance levels. This sudden reversal has led many traders to question whether the previous upward move was merely a fakeout designed to trap bullish investors.

According to market data, SHIB is now trading below both the 200-day Exponential Moving Average (EMA) and the 50-day EMA, two critical indicators that traders use to gauge trend strength. The break below these levels has further intensified bearish sentiment.

On-chain analytics show that over $12 million worth of SHIB positions have been liquidated in the last 24 hours, with a significant portion coming from overleveraged long positions. This has exacerbated selling pressure, creating a cascading effect in the market.

Some analysts argue that SHIB’s price action is part of a broader correction in the meme coin sector, as other tokens like Dogecoin (DOGE) and Pepe (PEPE) have also posted declines. Others believe the weakness could be temporary if SHIB manages to regain support above the 200-day EMA.

However, without a strong influx of buying volume, SHIB’s technical outlook remains fragile. A sustained drop below current levels could open the door for further losses, potentially revisiting lows seen earlier this year.

For now, traders are urged to exercise caution, as the market remains highly volatile and sentiment can shift rapidly in either direction.

Not financial advice do your own research.

@gvr