Shiba Inu plunges 16% amid intense selling pressure: Can SHIB bulls hold on?

As the broader crypto pulled back, some memecoins have faced massive downside pressure. Similarly, Shiba Inu [$SHIB] printed two daily red candles after surging to $0.0000062. In doing so, the memecoin dropped 16.13% to $0.0000052 and rebounded slightly.

Since then, the downside has eased and slightly rebounded to $0.0000053 at press but is still down 5.4%. At the same time, trading volume dropped 63% to $140 million, suggesting a market cool-down.

Why is Shiba Inu falling?

As the global market conditions changed amid the renewed tariff war, crypto investors reduced exposure. Amid this shift, $SHIB saw intense selling pressure across all market participants.

Source: Coinalyze

Over the past day, on the Spot market, Shiba Inu saw 3.8 trillion in sell volume compared to 3.4 trillion in buy volume. As a result, the buy-sell delta dropped to 0.4 trillion, a clear sign of aggressive spot selling.

The same pattern was observed on perps and Futures. Perps sell volume exceeded 1.32 trillion, while buy volume fell to 1.27 trillion.

Source: Coinalyze

The Perps market recorded a negative delta of -179 billion, with net buying also holding negative at 1.2 trillion.

On the Futures side, the memecoin recorded $16.17 million in futures outflows compared to 15.34 million in inflows. As a result, the Futures Netflow dropped to -833k, suggesting that traders have closed their positions.

Source: CoinGlass

Historically, strong selling pressure on both the derivatives and Spot markets have preceded a weakened market structure, thus leading to price drops.

Can $SHIB hold the market pressure?

Shiba Inu’s upside momentum has weakened with two days of selling pressure, while the downside has strengthened.

A look at the Directional Movement Index [DMI] confirms this directional shift. The positive index declined from 50 to 37.

However, it still sits above both ADX and DI, suggesting the trend still leans bullish. Moreover, the Relative Strength Index (RSI) has still held within an upward trajectory, reflecting that the uptrend is still intact.

Source: Tradingview

So, bearish pressure has not been enough to change the overall direction. If the market pressure cools down, the uptrend is most likely to resume. For a reversal, the memecoin needs a daily close above $0.0000060.

However, if the selling pressure continues, strengthening bears enough to retake the market, Shiba Inu could see more losses. In such a case, the memecoin will breach the $0.000005 support and drop to $0.0000047.

Final Summary

• Shiba Inu dropped 16.13% to a low of $0.0000052, then rebounded slightly to $0.0000053 at press time.
• Despite intense selling pressure, $SHIB’s bullish structure remains intact, and a close above $0.000006 will invalidate the bearishness.

Source