Shiba Inu (SHIB) has faced a severe downturn, plummeting by nearly 20% in just a few trading days. Currently valued at approximately $0.00002214, it has breached significant support levels, including the 50 EMA, while barely holding onto the 100 EMA. This drastic fall highlights the overwhelming selling pressure dominating the market at this time.
With bears firmly in control, the bullish sentiment surrounding SHIB appears to have evaporated, leaving the asset perilously exposed. Traders are feeling the pinch, as the breach of critical support levels has shaken their confidence. The breakdown is telling, especially since even crucial technical levels could not withstand the onslaught of selling—pointing to a worrying lack of buying momentum.
This tumultuous situation extends beyond SHIB itself. The market is experiencing a rise in volatility, leading to significant liquidations. Reports indicate that leveraged positions associated with SHIB have suffered major losses. The recent liquidation storm has triggered approximately $880 million in damages, illustrating a trend of market-wide deleveraging and adding further downward pressure to assets like SHIB.
Analyzing volumes reveals a concerning trend: the bearish momentum doesn’t seem fully exhausted yet. Although the RSI is suggesting an oversold condition, any substantial short-term reversal seems unlikely due to a continued absence of vigorous buying activity.
If SHIB fails to reclaim the 50 EMA as a support level soon, it risks plummeting to even lower levels. The next significant support appears to be around $0.00002044, where the 200 EMA could offer some potential stabilization. Nonetheless, without a broader market recovery or an uptick in buying interest, SHIB remains vulnerable to further declines.
For enthusiasts of meme-based cryptocurrencies, this volatility is a familiar narrative. Without substantial bullish momentum, assets such as SHIB are swiftly diminishing in value, as there’s little to no real use case to sustain their worth during turbulent times. It’s a tough pill to swallow for many who have invested in this token, reflecting the unpredictable nature of the crypto market.
