Shiba Inu (SHIB) has experienced a sharp decline, losing nearly 20% of its value within just a few trading sessions. The cryptocurrency’s price has broken through critical support levels, including the 50-day Exponential Moving Average (EMA), and is now trading at approximately $0.00002214 after briefly touching the 100 EMA.
This steep drop reflects the heightened selling pressure dominating the market and underscores a significant shift in sentiment.
Also Read: Ripple and SEC Legal Dispute: A Big Conspiracy? See This
Breakdown of Key Technical Levels and Market Impact
SHIB’s breach of pivotal support levels highlights a worrying lack of buying momentum. The inability of major technical thresholds to withstand the selling barrage has undermined trader confidence. With bears firmly in control, the asset has become increasingly vulnerable to further declines. The descent has affected SHIB and reverberated across the broader market.
Source: Tradingview
Rising market volatility has led to significant liquidations, with leveraged positions suffering substantial losses. Reports indicate that trades involving SHIB contributed to a liquidation frenzy, resulting in approximately $880 million in damages across the market. This period of widespread deleveraging has intensified the downward pressure on meme-based cryptocurrencies like SHIB.
Volume Trends and Indicators Signal Further Downside Risks
A descending volume trend suggests that bearish momentum may persist despite the Relative Strength Index (RSI) pointing toward an oversold condition. The lack of strong buying activity dampens hopes for an immediate recovery.
SHIB’s near-term outlook depends on its ability to reclaim the 50 EMA as support. Failure to do so could lead to a further drop, testing the next critical support level at $0.00002044, where the 200 EMA might offer temporary stabilization.
The high volatility of meme-based assets like SHIB is a recurring challenge, particularly during periods of market instability. Without a clear use case or utility to underpin its value, SHIB remains susceptible to rapid declines when bullish momentum fades.
Conclusion
Shiba Inu’s recent performance reflects the challenges faced by meme-based cryptocurrencies amid heightened market uncertainty. The intense selling pressure, a lack of robust buying interest, and limited utility have left SHIB vulnerable. SHIB risks further declines in the coming sessions without broader market recovery or renewed bullish sentiment.
Also Read: Crypto Market Faces Steep Declines Amid Bitcoin and Ethereum Price Drops
