Shiba Inu Extends Seven-Month Decline as Whales Signal Sell-Off

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) has entered a bearish phase ahead of a potential breakdown of support levels, with strong sell signals detected across most major moving averages.

According to cryptocurrency media outlet The Crypto Basic on February 24 (local time), Shiba Inu has been unable to escape its downtrend amid overall market weakness, including Bitcoin (BTC) falling below $63,000. An analysis of technical indicators shows that 13 out of 15 monitored moving averages are flashing strong sell signals, suggesting that the market has completely lost upward momentum. SHIB has declined about 18% in February alone and is now down 58% from its peak in August last year.

Economic uncertainty following the announcement of new tariff policies by the Trump administration has further pressured the virtual asset market, weighing heavily on Shiba Inu. An attempted recovery to $0.00000725 on February 14 failed, and the price is currently hovering precariously around $0.00000593. If the current downtrend continues, Shiba Inu could record seven consecutive monthly bearish candles—an unfavorable milestone.

Oscillators, which serve as auxiliary indicators, are showing relatively milder signals compared to moving averages, but uncertainty remains high. While buy signals have appeared in the Moving Average Convergence Divergence (MACD) and some Relative Strength Index (RSI) indicators, 14 out of 26 total indicators point to sell and 9 indicate neutral, making it insufficient to reverse the prevailing bearish market sentiment. In particular, with prices forming below key index moving averages, breaking through upper resistance levels remains structurally challenging.

On-chain data also reveals increasing deposit activity into exchanges, adding to selling pressure. Over the past 24 hours, Shiba Inu holdings on exchanges rose from 81.397 trillion SHIB to 81.418 trillion SHIB. This trend suggests that investors are more inclined to liquidate assets in response to market conditions rather than hold them, increasing the likelihood of panic selling if prices decline further.

Shiba Inu’s near-term fate hinges on whether it can defend the key support level around $0.0000050. Analysts warn that a breakdown of this level could trigger additional large-scale sell-offs, though they note that if the support holds, the possibility of a technical rebound remains. For now, Shiba Inu is undergoing a painful process of bottom-finding amid the dual pressures of macroeconomic headwinds and deteriorating technical indicators.

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