Shiba Inu plunges to two-year lows as bears overload the market
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- A huge move downward but buyers must beware of entering the market too early.
- The next week could see further losses if Bitcoin doesn’t hold on to the $25.2k mark.
In the past 24 hours, Shiba Inu shed 32% on the price charts. During this time, Bitcoin fell close to 5% and Ethereum dropped close to 8%. It appeared that the assets that the SEC termed as securities faced large losses, which in turn had a knock-on effect across the market.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Shiba Inu was not one of these coins, but it is possible that the selling pressure behind other altcoins sparked a panic in SHIB holders. Assets such as Ethereum Classic, Bitcoin Cash, Avalanche, and many others faced the same scenario.
The bulls faced decimation in the face of selling pressure
On the 4-hour timeframe, Shiba Inu has had a bearish outlook since early May. This bearish dominance was even more apparent in the daily timeframe as a bearish market structure was seen back in March.
While the move downward was not surprising, the violence of it was. The OBV fell off a cliff and the RSI reached 10 on the 4-hour chart. Both indicators showed enormous selling pressure within a short time.
Apart from losing an important support level at $0.0000079, Shiba Inu also fell below the $0.0000068 level. Shiba Inu previously traded beneath this level back in September 2021. Further south, the $0.0000051 represented the lows of that September.
The Fibonacci retracement levels showed a bounce was possible toward the 50%, 61.8%, or 78.6% levels. Short sellers can await a lower timeframe trend change around these levels before shorting the meme coin. At the time of writing, both long and short positions likely faced huge risks as volatility gripped the market.
The Open Interest nosedived with crashing prices
Over the past few days, the Open Interest remained flat while Shiba Inu prices ticked lower. The OI crashed by close to $33 million within 12 hours as SHIB bears obliterated the support zone at $0.0000078. This showed significant bearish sentiment in the market.
How much are 1, 10, or 100 SHIB worth today?
It was not advisable to try to catch knives over the weekend. While the worst might be over for the crypto market temporarily, 13 June could force further losses on the altcoin market in the event of a BTC nuke.