Key Insights:
- Shiba Inu price forms death cross, signaling extended bearish pressure.
- $110 million in SHIB futures exposed as price nears key support.
- Long-term holders now control over 80% of SHIB’s circulating supply.
Shiba Inu price slides toward key support, down 9% in a week, as death cross confirms bearish trend and $110M in open interest hangs in the balance.
Shiba Inu Price Enters Key Support as $110M Futures Exposure Faces Pressure
Shiba Inu price has extended its decline, shedding over 9% in the past week. At $0.00001222 on Apr. 4, the memecoin continues to hover near a crucial support level amid broader market weakness and growing sell-side pressure.
SHIB recorded a 2.21% drop in just one hour on Thursday, despite briefly rebounding to $0.00001244 earlier in the session. With total futures open interest exceeding 8.9 trillion SHIB—valued at $110 million—traders now sit on the edge of a potential volatility spike.
A recent “death cross” between the 50-day and 200-day exponential moving averages confirms continued downside momentum. The price remains confined within a descending channel that began forming in Dec. 2024.
Failed Breakout Hangs Over SHIB Despite Bullish Projections
CryptoELITES posted on Apr. 3, “Why not a 14X for SHIB?” suggesting a potential breakout. But that optimism runs against the current structure. SHIB has failed to reclaim key resistance near $0.0000175 and remains locked in a bearish setup.
Earlier projections by analysts like Jonathan Carter and MMBTtrader, who forecast a move toward $0.000038, have not materialized. Shiba Inu last reached that level in early March 2024, before dropping over 60% in the following months.
Changelly now forecasts $0.000038 by Dec. 2026—over a year from now. Meanwhile, Telegaon sees $0.0000728 as a maximum target in 2025, though current market structure gives little evidence to support that trajectory short term.
Shibarium Milestones Fail to Lift Sentiment
Despite a spike in network activity, Shiba Inu price continues to weaken. Shibarium, the project’s layer-2 blockchain, surpassed 1 billion transactions this week. Its total addresses neared 200 million, while gas consumption hit 38 trillion BONE.
Still, that progress has not translated into market momentum.
DeFiLlama data shows Shibarium’s total value locked (TVL) remains modest at $2.17 million. In a post on X, Shibarium Updates called the shift a move “from green to gold”—but traders have shown limited interest in the narrative.
Part of the disconnect stems from how BONE fees are partially converted to SHIB and burned. However, current burn rates have not offset broader selling pressures.
Whales and Long-Term Holders Tighten Grip as Retail Flees
IntoTheBlock reports that long-term SHIB holders now control over 80% of the total supply. These HODLers—defined as wallets holding for over a year—have increased their share steadily since late 2024.
The firm clarified that rising HODLer holdings reflect a promotion from “cruisers” rather than fresh accumulation. The bulk of buying occurred in 2023, but the data suggests minimal selling even during recent drawdowns.
Still, not all SHIB holders remain passive. Profit-taking during the Q1 2024 rally led to brief drops in HODLer balances, showing that even diamond hands are willing to trim exposure in volatile conditions.
Shiba Inu Price Must Flip TRON to Reclaim Top 10—But It’s a Steep Climb
Shiba Inu currently ranks 17th on CoinMarketCap, with a market cap of $7.19 billion. To reenter the top 10, it must surpass TRON, which holds a valuation of $22.58 billion.
That climb would require a 209% gain in market cap, pushing the Shiba Inu price to $0.00003833. The last time SHIB traded near that level was March 6, 2024.
While the token reached the top 10 in Oct. 2021 and again in 2023, current macroeconomic headwinds suggest a more difficult path ahead. The U.S. nonfarm payrolls report and Federal Reserve Chair Jerome Powell’s speech on Friday may add further volatility to crypto markets.
Shibarium-focused X account Susbarium Trustwatch has warned about an uptick in scams targeting SHIB holders. The group says impersonators are sharing fake links and phishing for wallet access.
While the core community remains active, trader sentiment has weakened. Many early adopters have reduced exposure, especially as price dips continue and broader market momentum fades.
Technical analysis shows Shiba Inu price at a critical support zone within its descending channel. A break below could trigger a move toward $0.0000105 or lower, depending on broader risk sentiment.
With a death cross in place, RSI near 41, and no clear catalysts ahead, the downside risk remains dominant. Futures open interest at $110 million adds fuel to potential liquidation events should SHIB fail to hold current levels.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
