Woofun AI reports that Shiba Inu (SHIB) has experienced a severe market reversal, shedding 16.13% of its value as broader crypto market weakness and renewed tariff tensions suppressed investor sentiment across speculative assets. This sharp decline marks a decisive shift from recent bullish momentum, with sellers rapidly seizing control after the token briefly approached the $0.0000062 resistance level. The immediate aftermath saw SHIB print two consecutive daily red candles, signaling a sustained period of downward pressure that has left the asset vulnerable to further downside risk. Traders have responded by reducing exposure, leading to a fragile rebound that failed to sustain meaningful upward traction.

The price action reveals a clear deterioration in short-term momentum, with SHIB sliding from its peak near $0.0000062 down to $0.0000052. This 16.13% drop was not an isolated event but rather the result of consistent selling pressure over two trading days, evidenced by the formation of two consecutive daily red candles. Although a modest recovery attempt lifted the price toward $0.0000053, the lack of follow-through buying suggests that market participants remain cautious. The volatility has cooled, but the underlying structure indicates that sellers still dominate the immediate order flow, leaving bulls in a defensive posture.

Spot market data provides concrete evidence of this aggressive selling behavior, with Shiba Inu recording 3.8 trillion tokens in sell volume during the latest period. In contrast, buy volume reached only 3.4 trillion tokens, creating a significant imbalance. This 0.4 trillion token delta highlights the intensity of spot-side liquidations and the reluctance of buyers to step in at current levels. Such a gap underscores the dominance of sellers in the cash market, where large holders appear to be offloading positions rather than accumulating. The resulting net negative flow reinforces the bearish narrative, as spot traders prioritize capital preservation over speculative entry.

Woofun AI data shows that perpetual contract activity mirrored the spot market's bearish bias, with derivatives showing a similar pattern of heavy selling. Perpetual contracts recorded more than 1.32 trillion tokens in selling volume, while buy volume stood near 1.27 trillion tokens. This imbalance produced a negative perps delta of 179 billion tokens, indicating that leveraged traders are also exiting long positions.

Furthermore, net buying remained negative near 1.2 trillion tokens, suggesting that even hedging activity is skewed toward downside protection. The alignment between spot and perp markets amplifies the downward pressure, as both retail and institutional players reduce their exposure to SHIB.

Futures flows added another layer of bearish confirmation, with outflows reaching approximately $16.17 million during the latest reporting period. Inflows, meanwhile, were limited to around $15.34 million, resulting in a Futures Netflow decline of roughly $833,000. This negative netflow indicates that traders are closing existing positions rather than opening new longs, which reduces immediate buying pressure across derivatives markets. The reduction in positioning can exacerbate price declines, as fewer participants are willing to provide liquidity on the bid side. Consequently, the market lacks the structural support needed to stage a robust recovery without a significant shift in trader sentiment.

Technically, SHIB bulls face a critical juncture, with the $0.0000060 level serving as the primary resistance that must be reclaimed to restore confidence. A daily close above this threshold could challenge the recent bearish momentum and open the path toward the previous $0.0000062 high.

However, failure to hold the $0.000005 support level would expose the next downside target near $0.0000047, potentially triggering further liquidations. For now, the technical picture remains mixed, with selling pressure having weakened short-term momentum but not eliminated underlying bullish strength. The next few sessions will determine whether buyers can rebuild momentum or if sellers will regain complete control.