Shiba Inu (SHIB) Price Drop Wipes Out $1 Billion in Profits: Market Indicators Signal Further Decline?
Shiba Inu (SHIB) recently experienced a sharp price drop, erasing $1 billion in profits and creating uncertainty in the market. With a significant support level breached, investors are bracing for further losses.
In the past few days, SHIB's price has plunged to a multi-month low, leaving investors in a tough spot. The Global In/Out of the Money (GIOM) indicator reveals that around 66.75 trillion SHIB, bought between $0.00002100 and $0.00002500, is now worth $1.38 billion. Had SHIB's price remained stable, these investments could have turned profitable. However, with the price dropping to $0.00002084, this potential has been lost.
The Relative Strength Index (RSI), a key momentum oscillator, is currently in bearish territory. The RSI, which ranges from 0 to 100, indicates overbought conditions above 70 and oversold conditions below 30. Currently, it is below the neutral mark of 50.0, suggesting increasing bearish pressure. This puts the RSI at its lowest point since October 2023.
For nearly two months, Shiba Inu's price fluctuated between $0.00002835 and $0.00002093. Many investors anticipated a breakout, but instead, SHIB broke below this range, now trading at $0.00002084. If the bearish trend continues, SHIB could fall further, potentially reaching lows of $0.00001600 or $0.00001473.
Despite the current downturn, there is a glimmer of hope. If SHIB can reclaim the support level at $0.00002093, consolidation might resume, allowing investors to potentially recover their losses. Reestablishing this support could invalidate the bearish outlook and stabilize the market.
Shiba Inu's recent price drop has shaken investor confidence and wiped out substantial profits. While market indicators point to further declines, reclaiming key support levels could offer a path to recovery. Investors should stay cautious and watch for signs of stabilization in the coming days.
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