As a seasoned analyst with years of market observation under my belt, I have witnessed numerous market fluctuations, and the recent downturn in Shiba Inu (SHIB) is no exception. The intense selling pressure that has swept through the crypto markets has left SHIB particularly vulnerable, with its rapid descent breaching important support levels such as the 50 EMA.
In simple terms, the value of Shiba Inu has dropped by nearly 20% over several trading sessions. It’s dipped below key support lines like the 50 Exponential Moving Average and is now around $0.00002214. This rapid fall suggests a high level of selling activity that is driving the market right now.
The overwhelming power of bullish sentiment held by bears has left SHIB highly susceptible, as its capacity to recover has been limited so far. This has resulted in a dent in traders’ trust due to the violation of crucial support thresholds. Furthermore, even significant technical levels have failed to resist the wave of selling, suggesting a lack of buying energy, which is underscored by this breakdown.
This action impacts more than just SHIB, and it appears that the overall market sentiment is shifting due to increasing volatility leading to massive liquidations. It seems that leveraged positions, particularly those involving SHIB, have experienced substantial losses. The recent wave of liquidation causing a $880 million loss suggests a phase of widespread deleveraging across the market, which amplifies the downward pressure on assets like SHIB.
It seems that the decrease in trading volume suggests that the downward trend might not be completely played out, which could be troubling when considering volume analysis. Even though the RSI hints at an impending oversold condition, a short-term reversal appears improbable because there’s insufficient strong buying activity at this time.
If SHIB fails to reclaim the 50 Exponential Moving Average (EMA) as a support, it might be tested at even lower prices. The next critical support could potentially be around $0.00002044, where the 200 EMA offers some potential for stabilization. However, without a broader market recovery or increased buying interest, SHIB may continue to decline.
It’s not surprising that the unpredictable nature of meme-based cryptocurrencies persists. Without significant positive trends, coins such as SHIB are swiftly devaluing because they don’t have a substantial practical application that could maintain their worth during turbulent times.
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2024-12-20 12:51