Shiba Inu (SHIB), one of the leading meme-based cryptocurrencies, has come under intense selling pressure, dropping over 12% in just 24 hours as geopolitical tensions and macroeconomic uncertainty roil the broader crypto markets.
The correction comes as Bitcoin, Ethereum, and other major assets also took a hit following rising concerns over the escalating Israel-Iran conflict, which triggered a sharp selloff in risk-on assets globally.
On June 13, SHIB dropped to a near two-month low, sliding from a daily high of $0.0000128 to a low of $0.0000114. At the time of writing, the token is trading at approximately $0.0000117, marking a dramatic reversal from the bullish momentum it enjoyed in previous weeks.
The price decline was accompanied by a spike in trading volume, which surged to $343 million, suggesting heavy activity driven largely by panic sellers exiting their positions.
Market Sentiment Weakens as Technical Breakdown Continues
Technical indicators are painting a concerning picture for SHIB in the near term. The token has decisively fallen below its 50-day moving average, a key support level that had previously held up during recent dips.
A previous report suggested that Shiba Inu could face a potential 35% drawdown if bearish momentum accelerates, putting the next key support zone around $0.0000085.
Derivative markets confirm this weakening sentiment. According to data from Coinglass, open interest in SHIB futures has declined by 17% to $141 million, while long liquidations have reached $787,000 in just 24 hours.
These figures suggest that leveraged traders betting on an upward move have been forced to exit, amplifying the selling pressure.
Despite these warning signs, not all market participants are convinced that SHIB’s downturn is a long-term trend.
Whale Accumulation Hints at a Potential Reversal
In contrast to the retail panic, on-chain data reveals that whale wallets holding more than $100,000 worth of SHIB are quietly buying the dip. According to analytics firm IntoTheBlock, whale wallets accumulated over 500 billion SHIB tokens in a 24-hour window.
This buying spree, worth approximately $8.5 million, flipped netflows from negative to strongly positive, indicating growing confidence among high-value investors.
Historically, such whale activity often coincides with local bottoms in price. By absorbing excess supply during selloffs, these large holders can stabilize price action and eventually catalyze a reversal. If accumulation continues at this pace, SHIB may find a strong support base around current levels.
Whale investors tend to adopt long-term views and often act when the general market sentiment is fearful—a trend consistent with what is being observed now.
Their growing exposure suggests they believe the recent dip presents a buying opportunity ahead of the next potential uptrend.
Binance Traders Echo Optimism Despite Market Jitters
In another signal of resilience, futures traders on Binance are leaning heavily into long positions on SHIB. The exchange’s long/short ratio has surged to its highest level in nearly three weeks, with data showing that 72% of positions on the 1000SHIB/USDT pair are now long. This suggests that despite price weakness, traders are expecting a bounce.
However, such an aggressive buildup of longs during a downtrend is a double-edged sword. While it reflects bullish sentiment, it also increases the risk of a “long squeeze,” where overleveraged positions are liquidated if prices continue to fall, potentially exacerbating the decline.
Still, Binance’s metrics reflect a broader expectation that the current dip is a reaction to external events rather than a fundamental breakdown in Shiba Inu’s value proposition.
Broader Macro Picture Adds Complexity
The recent downturn in crypto markets has not occurred in isolation. Rising interest rates, persistent inflation concerns, and renewed geopolitical instability have all fueled investor caution.
Traditional financial markets have also seen increased volatility, and cryptocurrencies, which often correlate with equities during times of stress, have not been spared.
Meanwhile, oil prices and bond yields have surged amid concerns that broader Middle East tensions could affect global energy supplies. This macroeconomic environment has prompted traders to de-risk portfolios, affecting digital assets that are still viewed as speculative.
Despite this turbulence, Shiba Inu continues to make strides in development. Its ecosystem has expanded with initiatives like Shibarium, its Layer-2 blockchain, and increasing adoption of SHIB as a payment method among online merchants. These efforts are aimed at giving SHIB long-term utility beyond meme-driven hype.
Outlook: Can SHIB Rebound?
Whether this marks a temporary correction or the beginning of a more extended downtrend remains to be seen. Historically, meme coins like SHIB are highly sensitive to shifts in market sentiment, often making sharp recoveries just as quickly as they decline.
If whale accumulation persists and global tensions subside, the meme token could recover, particularly if the broader market regains confidence.
For now, traders and long-term holders alike are watching closely. As the price hovers near two-month lows, the coming days will be critical in determining whether SHIB can regain momentum or if further losses are on the horizon.
