Shiba Inu (SHIB) Hits Multi-Year Low: Traders Adopt a Bearish Stance

Shiba Inu (SHIB), one of the most iconic memecoins in the cryptocurrency market, has reached a multi-year low amid widespread selling pressure affecting risky assets. According to AMBCrypto data, this decline is part of a broader context of prolonged correction in memecoins, often seen as speculative assets. With a market capitalization of $2.95 billion and a 24-hour trading volume of $8.70 million , SHIB is experiencing a marked bearish trend, characterized by a decrease in investor engagement and increased volatility. The facts Shiba Inu recorded a multi-year low, confirming a prolonged downtrend. Technical indicators, notably the Relative Strength Index (RSI) , show extreme oversold conditions (RSI below 30), which could precede a short-term technical rebound. However, the persistence of selling pressure raises fears of a continued decline. On-chain data reveals a 12% decrease in active addresses over the past seven days, a sign of disengagement among small investors. Additionally, whales, holding more than 10 million SHIB , have reduced their positions by 8% over the last month. No major technical developments or partnerships have been announced recently, limiting bullish catalysts for the token. Why it matters The decline of SHIB could exacerbate the volatility of memecoins , with a domino effect on similar assets such as Dogecoin (DOGE) or Trump (TRUMP). A massive liquidation of long positions in these speculative assets could trigger panic movements across crypto markets. Memecoins, although marginal in terms of market capitalization, play a symbolic role in the ecosystem, and their prolonged correction could reduce risk appetite in speculative segments. From a macroeconomic standpoint, no direct consequence is expected, but a prolonged decline in memecoins could reinforce criticism of excessive speculation in the crypto sector. Regulators could adopt stricter measures, especially if volatility persists. Finally, the absence of fundamental catalysts for SHIB limits recovery prospects, leaving investors in a bearish stance. To Watch Trading volume and liquidity : A resurgence in volumes could indicate a technical rebound, while a continued decline would suggest a loss of interest. Whale reaction : If wallets holding more than 10 million SHIB begin to accumulate, this could signal a trend reversal. Technical indicators : The RSI, although oversold, remains a lagging indicator. A sudden recovery could occur without any fundamental change. Macroeconomic context : An improvement in market conditions or a decrease in overall volatility could positively influence SHIB and memecoins. External developments : The emergence of a new speculative narrative or an unexpected partnership could revive interest in SHIB.