Shiba Inu has suffered a significant setback, losing almost 20% of its value in a few trading sessions. The price has fallen through important support levels such as the 50 EMA and is currently trading at about $0.00002214, having touched the 100 EMA. This sharp decline is a reflection of the intense selling pressure that is currently controlling the market.
Due to the bears' total dominance of the bullish sentiment, $SHIB
is now extremely vulnerable. Due to the asset's limited capacity to stage a recovery thus far, traders' confidence has been damaged by the breach of important support levels. Because even important technical levels were unable to withstand the selling barrage, the breakdown emphasizes the lack of buying momentum.
This move has ramifications that go beyond SHIB. With rising volatility resulting in large liquidations, the mood of the market as a whole seems to be changing. Leveraged positions are reported to have suffered significant losses, especially in trades involving SHIB. The recent liquidation frenzy that caused $880 million in damages is indicative of a period of market-wide deleveraging, which intensifies the downward pressure on assets such as SHIB.
The descending volume tendency indicates that bearish momentum may not have been fully exhausted yet, which is a concerning finding from volume analysis. Although the RSI points to an approaching oversold situation, a short-term reversal is unlikely due to the lack of robust buying activity.
Should SHIB not quickly recover the 50 EMA as support, the asset may test even lower levels. Around $0.00002044, where the 200 EMA provides some chance for stabilization, is the next critical support. SHIB, however, runs the risk of further declines in the absence of a wider market recovery or renewed buying interest. The volatility of meme-based cryptocurrencies is nothing new. In the absence of notable bullish momentum, assets like SHIB are rapidly losing value due to the lack of an actual use case that would keep their value up even in periods of instability.
