Shiba Inu, a famed meme token, is in a critical position, threatening holders with significant losses. Current data indicates that about 85% of the total SHIB supply is in the red, and further declines could lead to massive losses.
Current State of SHIB
According to recent data, more than 836.84 trillion SHIB tokens are out of the money, as the token price stands at $0.000013. This accounts for around 85% of the total supply. If the bearish trend persists, SHIB holders may face dire losses, reaching trillions of tokens.
Chart Analysis and Trends
SHIB's chart shows a downward trend. The token failed to hold a crucial support level and dropped below the major exponential moving averages of 26, 50, 100, and 200. This alignment usually indicates a strong bearish trend with minimal signs of reversal. With less than 12% of the supply in profit, most holders are underwater, increasing concerns. A drop below the local support level of $0.0000125 could lead to a further significant decrease in prices.
Potential Consequences and Solutions
Should SHIB breach the $0.0000125 level, it may trigger panic selling and substantial losses for investors. The only remedy in this situation would be a strong bullish reversal supported by volume, which is currently absent. Without it, the risk of a multitrillion-token loss event remains very high.
SHIB is in a precarious situation, and upcoming market moves will determine its future. Investors should closely monitor market activity and brace for potential losses unless a quick trend reversal occurs.
