Shiba Inu price fell to $0.00001266 earlier this week. However, it got a strong bounce from that level and the price now stands at $0.00001637. This sharp decline brings back memories of several months ago when there was a constant worry that this digital asset would not be stable in the future.
Shiba Inu’s position worsens as the broader crypto market reels from a $620 million liquidation storm. Despite these challenging conditions, one critical indicator suggests a possibility for a turnaround.
This hint of overselling is given by the relative strength index (RSI) for SHIB going to a y/y low level of around 24 overdone positioning that usually precedes bounce-backs. However, among other bearish signals include its fall through important support levels such as, crossing below key moving averages like 100-day SMA and 200-day SMA.
To respond to this current freefall, SHIB has identified new areas where prices has support. A strong rebound from the $0.00001296 level suggests that all hope may not be lost for those holding tokens since this could either act as a springboard or further push above $0.00001830. The recent loss of the $0.000015 and $0.000014 support levels added pressure, suggesting that SHIB might face difficulties in recovery. Technical indicators reveal SHIB moving back within Bollinger Bands.
Whale activities highlight significant sell or buy actions which can drive down or up SHIB price soon during this massive volatility and notable transaction volumes recorded.
According to IntoTheBlock, SHIB’s large transaction volume surged by over 250% as the price dropped to $0.00001230, indicating a flurry of whale transactions possibly aiming to capitalize on or cushion against the price fall. As SHIB navigates through these turbulent times, the $0.00001230 level emerges as a critical defensive point for bulls to uphold to prevent further slides. The next major support at $0.00001 will be crucial for stabilizing SHIB's decline and potentially sparking a recovery if market conditions permit.
These recent bounce has seen SHIB hover around $0.00001754, which has now become new resistance level. Shiba Inu has lost a major chunk of its market capitalization over the past couple of weeks under such extreme bearish pressure; it plunged from approximately $10 billion to just below $7 billion.
Meanwhile, this downturn impacted not only SHIB but also caused a significant loss in value of top one hundred and twenty-five altcoins that together reduced by an aggregate sum of $155 billion.