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Shiba Inu (SHIB) faces a critical support test after a recent 6% price drop amid broader crypto market profit-taking.
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The token’s price action closely mirrors Bitcoin’s recent pullback from record highs, highlighting SHIB’s sensitivity to market-wide trends.
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According to IntoTheBlock, over 99 trillion SHIB tokens are held at an average cost of $0.000011, forming a significant demand zone that could stabilize prices.
Shiba Inu’s recent dip tests a major support level with 99 trillion tokens held near $0.000011, signaling potential stability amid crypto market profit-taking.
Shiba Inu’s Key Support Zone: 99 Trillion Tokens Held at $0.000011
Shiba Inu’s recent price decline has brought it to a crucial support level, where approximately 99.75 trillion SHIB tokens are held by over 325,000 addresses at an average cost basis of $0.000011, according to IntoTheBlock data. This concentration of holdings creates a formidable demand zone, often referred to as an “in-the-money” area, where investors are less likely to sell, thereby providing a natural floor for the price.
This support zone is particularly significant because it represents a psychological and financial threshold for many holders. If SHIB’s price were to fall below this level, a large portion of investors would face unrealized losses, potentially triggering increased selling pressure. However, as long as the price remains above this zone, these holders are incentivized to maintain their positions, which could lead to price stabilization or a rebound.
Market Dynamics: SHIB Mirrors Bitcoin’s Profit-Taking Behavior
The recent pullback in SHIB’s price aligns closely with Bitcoin’s correction from its record high of $123,000 to below $117,000. This correlation underscores SHIB’s sensitivity to broader market movements, as investors often adjust their portfolios in response to Bitcoin’s performance. The profit-taking observed across the crypto market has temporarily pressured SHIB, but the strong support level may mitigate further declines.
Market analysts suggest that SHIB’s ability to hold above the $0.000011 support zone amid this volatility is a positive sign. It indicates resilience and the potential for sideways consolidation, which could set the stage for future upward momentum if market sentiment improves.
Long-Term Price Stability and Investor Sentiment
Since the beginning of 2025, Shiba Inu has maintained its price above the $0.00001 mark, successfully avoiding the addition of another zero to its price metric. This stability is crucial for investor confidence, as it prevents the token from entering a lower price bracket that could deter larger investments.
The sustained support at this level reflects a robust holder base that is committed to the asset despite short-term fluctuations. Such a foundation is essential for Shiba Inu’s long-term growth prospects, especially as the cryptocurrency ecosystem continues to evolve and mature.
Implications for Traders and Investors
For traders, the current support zone offers a strategic entry point with defined risk parameters. Holding above $0.000011 may signal a buying opportunity, especially if accompanied by positive market sentiment and increased trading volumes. Conversely, a decisive break below this level could indicate further downside risk.
Investors should monitor on-chain metrics and market trends closely, as these indicators provide valuable insights into SHIB’s price trajectory. Staying informed about broader crypto market movements, particularly Bitcoin’s performance, remains critical when assessing Shiba Inu’s near-term outlook.
Conclusion
Shiba Inu’s recent price correction has tested a vital support zone where nearly 100 trillion tokens are held at an average cost of $0.000011. This demand cluster serves as a key defensive line against further declines, reflecting strong investor conviction. While SHIB’s price movements continue to mirror Bitcoin’s market dynamics, the token’s ability to maintain this support level suggests potential for stabilization or recovery. Traders and investors should watch this zone closely as a barometer for Shiba Inu’s short-term resilience and long-term prospects.
