Shiba Inu is on the verge of a catastrophic collapse right now, and if the bearish trend persists, the token might deal investors a devastating blow with losses possibly reaching quadrillions of tokens.
More than 836.84 trillion SHIB tokens or about 85% of the total supply are currently out of the money, meaning that their holders are sitting on losses at the current price of $0.000013, according to the most recent on-chain data. There is a huge risk that a further decline in price will lock in enormous unrealized losses, which would be a real setback for the larger SHIB community.
The chart supports this pessimistic view. Having just momentarily surpassed the breakout line, SHIB dropped back below it after failing to hold a crucial support level. Now that a fakeout has been verified, the asset is trading below the 26th, 50th, 100th and 200th major exponential moving averages.
Usually this alignment indicates a strong bearish trend with minimal indications of a reversal. With only 11.63% (114.55 trillion SHIB) of the supply in profit, the low in the money ratio further raises concerns. This indicates that the great majority of holders are present in the water.
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Panic selling is frequently sparked by such circumstances, particularly if SHIB breaks below the $0.0000125 local support level, which it is already vying for. If that breakdown occurs, SHIB may plunge into a freefall toward the $0.000010 range or lower, sending billions more SHIB into loss territory and dealing investors a devastating psychological blow.
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The only remedy for the tense situation would be a strong bullish reversal supported by volume, which is not happening right now. Without it, there is a very real chance of a quadrillion-token loss event, which could short-term ruin SHIB’s recovery prospects.
