Shiba Inu falls below $0.000005 after failed breakout, $176,000 in long liquidations

Resistance holds as sellers return

The resistance encountered around $0.00000500 was intensified by the convergence of multiple technical factors. Notably, the 50-day moving average is positioned close to this mark, amplifying the rejection as SHIB retraced after testing this level. Recent daily price candles have shown lower highs, a signal that bullish momentum has faded rather than strengthened over the past several sessions.

Technical indicators suggest the trend has shifted toward a corrective phase. SHIB’s price has moved below its 20-day moving average, while the 50-day moving average remains a ceiling overhead. The longer-term 100-day and 200-day averages continue to sit higher, leaving the prevailing bearish trend intact as the token failed to reclaim a major resistance zone.

Weaker momentum and liquidations

Momentum indicators have corroborated the loss of bullish strength. The Relative Strength Index (RSI) has retreated from overbought territory, dropping to 53. This reading signals a notable pullback in buying pressure without venturing into oversold conditions, leaving potential for further downside if sellers persist in the coming sessions.

Over the past 24 hours, leveraged traders have absorbed significant losses. Approximately $176,000 in long positions have been liquidated compared to under $13,000 in shorts. This sharp imbalance illustrates the rapid exit of bullish speculators as the recent rejection forced leveraged positions to unwind.

Shifting market flows and support levels

While spot market flows remain positive, suggesting healthy net inflows for SHIB in recent time frames, derivatives trading tells a different story. Futures flows have turned negative, reflecting growing caution among speculative traders compared to those buying on spot exchanges. On-chain data also provides mixed signals, adding complexity to the picture.

Exchange reserves have seen a modest uptick alongside increases in both exchange inflows and netflows over the past day. This trend places more SHIB on trading platforms, exposing the token to increased selling pressure if investors decide to sell recent gains.

Recent on-chain metrics show that rising exchange reserves could put additional downward pressure on SHIB if holders opt to realize profits.

For short-term price action, the initial support now lies at the rising 20-day moving average, currently around $0.00000465. Should the price fall below this level, it could revisit the prior breakout area near $0.00000445. The main objective for bullish traders remains reclaiming the 50-day moving average to reestablish upward momentum.