- Shiba Inu loses $600 million in nine hours, market cap drops.
- Over $120 million traded as SHIB’s price continues to slide.
- Supply-demand imbalance pushes Shiba Inu price closer to critical level.
Shiba Inu (SHIB) has experienced a significant decline in market value, shedding approximately $600 million within just nine hours. The popular meme coin saw its market capitalization plummet from $5 billion to $4.39 billion, according to CoinMarketCap data. During this period, SHIB’s price dropped to $0.0000074 USDT, a level where many traders may hesitate to consider it a bargain.
Despite the sharp decline, the sell-off has not been caused by a slow market reaction. Over $120 million in volume was traded during the price drop, suggesting that sellers faced no difficulty executing their trades. However, there was not enough buying pressure to stabilize the price, and SHIB’s market cap mirrored the price decline closely. With coins exchanging hands continuously, the market bleed persisted until the value hit a critical point.
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Price Struggles and Market Dynamics
Earlier this week, SHIB attempted to recover from its downward trend multiple times. Unfortunately, each rebound effort was capped by the same resistance levels that previously acted as support. As the market pressure built up, SHIB found itself near the lower boundary of its recent price range, with little standing in the way of further declines.
Source: CoinMarketCap
This ongoing struggle has led to a shift in the coin’s overall market sentiment. Traders are now closely watching the $0.0000067-$0.000007 range, where SHIB’s price is approaching rapidly. The increasing volume at these levels could accelerate the downside, making it crucial for buyers to step in if the price is to avoid further drops.
Market Supply and Demand Imbalance
Notably, the situation is compounded by a lack of significant changes in SHIB’s circulating supply, which remains around 589 trillion coins. Despite efforts to burn coins, the price has not been significantly affected. With demand failing to match the supply, SHIB’s price continues to be pushed down to levels where buyers have previously shown interest. The balance between supply and demand remains fragile, and any further decrease in buying pressure could send the price into even lower territories.
Traders will need to closely monitor the situation as SHIB’s price approaches the critical $0.0000067 level. A breakdown below this threshold could signal a prolonged downturn for the coin, especially with the current market dynamics.
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