Shiba Inu Price Drops 4% as Crypto Market Loses $515M — What's Next for SHIB?

Shiba Inu extended losses on Saturday, hitting an intraday low of $0.00000544 amid intensified selling pressure in cryptocurrency markets. The move came after SHIB briefly tested the $0.00000555 level, a point that failed to hold as bearish momentum picked up across digital assets. At press time, SHIB was trading at $0.00000556, down 4.52% over the last 24 hours.

The broader market took a significant hit. Over $515 million in crypto positions were liquidated within the same 24-hour window. Most major tokens turned red on a weekly basis. For SHIB specifically, seven-day losses stretched to 14.6%, reflecting sustained pressure that began earlier in the week.

The catalyst was a U.S. producer price index report released Friday. The data showed producer prices rose more than analysts had anticipated. That reading stoked concerns about lingering inflation, reinforcing expectations that the Federal Reserve will hold interest rates steady in the near term. Rate-sensitive assets, including cryptocurrencies, sold off in response.

Three Triggers Behind the Decline

Shiba Inu team member Lucie addressed the sell-off directly, naming three key factors behind the market's decline. The first was hotter-than-expected macroeconomic data, specifically the PPI print, which rattled investor confidence. The second was a pullback in artificial intelligence and technology stocks, which have historically dragged risk assets lower in tandem. The third was a broader rise in macroeconomic uncertainty, which has driven institutional and retail investors toward safer positions.

Lucie described the overall environment as ”a classic risk-off day.” The assessment was blunt. When fear climbs across financial markets, crypto typically absorbs outsized losses compared to traditional assets. That dynamic played out clearly on Saturday.

The Crypto Fear and Greed Index reinforced this view. The index registered 14 at the time of writing, firmly in ”extreme fear” territory. Readings that low signal widespread caution and reduced appetite for speculative positions. Historically, such readings have preceded short-term bounces, though they offer no guarantee of immediate recovery.

Technical Levels Traders Are Watching

From a technical standpoint, SHIB's Relative Strength Index (RSI) has dropped below 30 on several lower time frames. That threshold typically indicates an oversold condition. When RSI falls into this zone, a relief rally or, at a minimum, a short-term bounce becomes a statistical probability. Traders refer to the latter scenario as a ”dead cat bounce”, a brief recovery within a sustained downtrend.

On the upside, resistance levels are clearly defined. The $0.000007 price point aligns with the 50-day moving average on the daily chart. A stronger ceiling sits at $0.00000949, which corresponds to the 200-day moving average. Both levels represent meaningful hurdles that SHIB would need to clear for a sustained recovery to take shape.