- SHIB dropped 12% while testing a major historical support zone from 2024.
- Over 2.45 billion SHIB liquidated as bearish momentum crushed leveraged traders.
- Exchange outflows increased, reducing immediate sell pressure despite weak market structure.
Shiba Inu traders faced another difficult week as meme coins continued losing strength across the market. SHIB dropped more than 12% during the past seven days and slipped toward a major support zone that previously sparked a strong recovery in 2024. That level now attracts heavy attention because many traders believe buyers could attempt another defense there. At the same time, leveraged positions collapsed across derivatives markets. More than 2.45 billion SHIB disappeared through liquidations as bearish pressure intensified and short-term traders rushed to exit positions.
SHIB Revisits Crucial Demand Zone
Shiba Inu traded near $0.0000057 after sellers maintained control throughout the week. The token now sits close to a long-term demand area that previously stopped a deep correction and triggered a powerful rally. Analysts continue monitoring this zone because another successful defense could improve market confidence and slow the recent decline.
During that earlier phase, SHIB rebounded sharply after reaching the same broad support range. Buyers then pushed prices much higher before momentum finally cooled. The latest weekly chart now shows SHIB compressing around that familiar area again, creating speculation about another possible recovery attempt. Historical demand zones often attract attention because traders remember previous reactions from those levels.
In SHIB’s case, price repeatedly slowed around this lower range during past corrections. That history gives bulls a reason to watch current price action carefully. If buyers manage to defend support successfully, SHIB could attempt a move back toward mid-range resistance levels before challenging higher prices again. Still, traders remain cautious because support zones alone cannot guarantee a rebound.
Bears Eye Lower Levels as Liquidations Explode
Another analyst, FOUR Crypto Spaces, shared a more bearish outlook after studying the daily chart. According to the analysis, SHIB recently broke below an ascending support trendline that held price action together for several weeks. That breakdown changed short-term structure and returned momentum toward sellers. The analyst now expects another possible move lower toward the $0.0000051 demand zone.
That horizontal support area sits below current prices and could become the next target if weakness continues. The chart also showed SHIB falling sharply after losing trendline support, which usually creates fear among short-term traders and forces leveraged positions to close automatically. Fast declines often trigger panic selling, especially across meme coins. However, sharp pullbacks sometimes attract long-term buyers searching for discounted entries.
SHIB now stands at an important crossroads. A rebound from current support would support the bullish outlook shared by Token Talk. Another drop toward $0.0000051 would strengthen the bearish scenario highlighted by FOUR Crypto Spaces. The latest market decline created heavy damage across leveraged positions.
