Shiba Inu slips below $0.00001 as Bitcoin retreats from $114,000, triggering market-wide liquidations and dampening sentiment.
Key Insights:
- Shiba Inu fell 0.68% to $0.000009915 after failing to sustain gains above the key $0.00001 threshold.
- Over $748 million in leveraged crypto positions were liquidated as Bitcoin dropped from its $114,000 peak.
- Trading volume in Shiba Inu surged 28%, with 20.9 trillion tokens exchanged amid ongoing market uncertainty.
Shiba Inu extended its decline on Tuesday, slipping below the key $0.00001 level as broader cryptocurrency sentiment weakened. The pullback followed Monday’s peak of $0.0000105, halting the token’s attempt to erase a zero from its price. At the time of writing, SHIB traded at $0.000009915, marking a 0.68% drop in the last 24 hours.
The correction in Shiba Inu mirrored Bitcoin’s decline after the leading cryptocurrency briefly surpassed $114,000 on Monday. Bitcoin later surrendered most of its gains, triggering widespread liquidations across the market. According to CoinGlass data, more than $748 million worth of leveraged positions were liquidated, affecting both long and short traders.
Increased SHIB Trading Activity
Despite the dip, trading activity in Shiba Inu remained strong. CoinMarketCap data showed over 20.9 trillion SHIB tokens changed hands in the last 24 hours, representing a 28% increase in trading volume to $210.09 million. Analysts noted that higher volumes may indicate growing investor engagement as the market seeks stability.
The broader crypto market has struggled to maintain momentum, with the Fear and Greed Index lingering in the “fear” zone for seven consecutive days. This sustained caution underscores the fragile sentiment among traders. However, historical trends suggest that extended fear phases often precede local market recoveries, giving some traders reason for optimism.
Outlook for Shiba Inu
As SHIB attempts to recover, attention now turns to whether the token can reclaim the $0.00001 level. Sustained trading volumes and a shift toward positive sentiment will be crucial in determining short-term price direction. If bullish momentum returns, analysts expect potential upside targets near $0.0000119 and $0.0000127.
On-chain metrics show continued market choppiness, signaling a period of consolidation before any decisive trend emerges. Consequently, investors may see limited volatility in the coming days as traders gauge Bitcoin’s influence and broader risk appetite across digital assets.
