The Shiba Inu (SHIB) market continues to decline, reaching its lowest levels in years. The primary cause of this imbalance is the massive liquidation that took place, reaching approximately 9,000%.
Analyses of Shiba Inu (SHIB) concurred in warning about highly volatile burn metrics and the breaking of key technical levels, factors that could intensify losses if selling pressure persists in the broader crypto market.
Over the past few days, SHIB experienced an extreme liquidation imbalance of nearly 9,000%, immediately after the 50-day moving average crossed below the 200-day moving average, forming a classic “death cross.”
In terms of price, markets place SHIB trading around $0.00000665, slightly below a relevant technical support level at $0.00000667. The break below that level exposed the token to a deeper zone near $0.0000050, described in reports as a three-year low within the observed timeframe.
Can Shiba Inu recover its level?
Reports linked the liquidation event to a high concentration of long positions in derivatives markets, which amplified the impact of the initial move. This dynamic was reinforced by the broader crypto market decline, led by Bitcoin, which increased risk aversion and accelerated selling in speculative altcoins.
On the supply side, on-chain metrics offered mixed signals. Burning activity showed extreme volatility, with reported spikes of up to 200,000% in 24-hour periods, alternating with episodes where burning dropped to zero. This instability weakened the relationship between burning and a potential short-term price recovery.
Projections and technical readings presented divergent scenarios. Some analysts warned that if liquidity continued to tighten, the price could extend its decline to $0.0000040 or lower. Other models offered more optimistic ranges for 2026, with approximate targets between $0.00000518 and $0.00000694, contingent on substantial changes in tokenomics and the market environment.
For investors and product teams, this episode underscores the liquidity and execution risks associated with leveraged exposure to low-priced, high-supply tokens. If the decline extends into areas of lower liquidity, slippage, widening spreads, and the cost of large trades or liquidations could increase significantly.
