The crypto market recently experienced a significant liquidation of $500 million, triggered by a surge in the “sell the news” sentiment after Bitcoin faced challenges around the $45,000 mark. Consequently, Bitcoin’s decline towards $40,000 led to a substantial sell-off in the altcoin sector, with meme coins not being an exception. Shiba Inu, for example, lost its recent achievement of reaching $0.00001 and fell towards a critical support level, eliminating any chances for future price surges.
SHIB Price Touches New Monthly Low
The Shiba Inu token (SHIB) has experienced a sharp decline, hitting its lowest point in the past month with a robust 20% drop within the last few hours. Consequently, the SHIB price touched a low of $0.00000827 per token, contributing no positive momentum during a period of intense crash in the market, amounting to a $500 million liquidation.
Coinglass data indicates that Shiba Inu price experienced a total liquidation of over $2.2 million, out of which $2.1 million was from long-liquidation. Derivatives associated with SHIB have seen a remarkable surge in trading volume, showing a massive 147% increase. Nevertheless, there has been a simultaneous 21% decrease in open interest, indicating the influencing nature of this market downturn.
Whales have also played a big role in the recent decline as they heavily liquidated during the crash. Data from IntoTheBlock shows that the whale transactions have been steadily increasing for over the last few days and it touched 71 transactions.
Interestingly, as the crypto market rebounded from the low due to increasing buying pressure near the dip, SHIB price surged from its monthly support level. At the time of this report, the ratio of long to short positions has seen a rise, currently standing at 1.3041. This trend indicates a growing bullish sentiment in the market, with 57% of long-position holders anticipating a recovery in price.
What’s Next For SHIB Price?
Shiba Inu’s buyers have successfully defended further decline below the monthly support line of $0.000008. As buyers increasingly purchased SHIB near the dip, the price has been on a steady recovery, aiming to gain its old momentum. As of writing, SHIB price trades at $0.0000096, declining over 9.6% from yesterday’s rate.
SHIB is experiencing fluctuating prices as it declined below the ascending support line. However, a strong recovery from the immediate Fib level signals a robust defense by the bullish traders. A surge above the 20-day EMA could potentially hold the SHIB price above $0.00001 again. At this point, it’s expected that the bearish traders will strongly resist this upswing.
In case the price dips from the support of $0.000008, the SHIB price might oscillate around $0.0000076 for an extended period. The bearish traders could gain an advantage if they push the price below $0.0000066, potentially triggering another wave of liquidations.
With the RSI trading around the oversold region of 21, we might see further upward correction in the coming hours.
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