- Shiba Inu tumbles as inflation fears shake crypto markets
- Extreme fear grips traders amid $515 million liquidations
- Oversold signals emerge while key resistance levels loom
Shiba Inu extended its decline early Saturday as selling pressure swept across digital assets. The token briefly tested the $0.00000555 level before slipping further to $0.00000544. At press time, SHIB traded near $0.00000543, down 6.43% in 24 hours.
Broader market weakness amplified the decline. Nearly $515 million in crypto positions were liquidated within a single day. Consequently, most major tokens posted weekly losses. Shiba Inu deepened its seven-day decline to 16.03%.
Macroeconomic data intensified the sell-off. A fresh U.S. producer price report showed stronger-than-expected inflation pressures. Hence, investors adjusted expectations around Federal Reserve policy. Many traders now believe rate cuts may remain on hold.
Shiba Inu team member Lucie addressed the downturn in a social media update. According to Lucie, hotter inflation data, an AI and tech stock pullback, and rising macro concerns triggered the drop. Additionally, she described the session as a classic risk-off day.
Market sentiment reflects that caution, with the Crypto Fear and Greed Index remaining at 14 and signaling extreme fear. Lucie noted that when fear rises, crypto reacts more sharply than other assets.
Also Read: XRP Liquidation Imbalance Deepens as $12.56M Longs Wiped in 24 Hours
Technical Signals Flash Oversold Conditions as Key Levels Approach
Technical indicators show mounting pressure on short-term charts. The relative strength index on lower time frames dropped below 30. Such readings often signal deeply oversold conditions. Consequently, traders may watch for a brief relief rally.
However, oversold signals do not guarantee a sustained rebound. Resistance now stands at $0.000007 and $0.00000949. These levels align with the daily 50 and 200 moving averages.
Support remains near $0.000005, where SHIB previously stabilized on February 6. If that level breaks, sellers could test lower ground. Besides, declining open interest across the market suggests cautious positioning.
Beyond technical factors, regulatory timelines also draw attention. The March 1 deadline tied to reward provisions under the Clarity Act approaches. Although discussion remains limited, analysts expect it to influence market direction.
Therefore, Shiba Inu’s near-term path depends on broader crypto sentiment. Price stability may require easing macro pressure and improved risk appetite.
Conclusion
Shiba Inu’s drop to the $0.00000555 range underscores growing market caution. Inflation data, equity weakness, and regulatory focus continue shaping short-term momentum.
Also Read:Â BlackRock Snaps Up $635M in Bitcoin as Price Suddenly Turns Red
