Shiba Inu falls below $0.00001 milestone amid $500 million cryptocurrency market crash! What will be the price of SHIB?
The cryptocurrency market recently experienced a significant liquidation of $500 million due to a surge in “sell the news” sentiment after Bitcoin faced a challenge near $45,000. As a result, Bitcoin’s decline towards $40,000 led to significant selling in the altcoin sector, and meme coins were no exception. For example, Shiba Inu recently lost its $0.00001 performance and fell to a critical support level, eliminating the possibility of a future price surge.
SHIB price hits new monthly low.
Shiba Inu Token (SHIB) has experienced a sharp decline and has hit its lowest point in the past month, with a sharp drop of 20% in the last few hours. As a result, SHIB price hit a low of $0.00000827 per token, failing to provide any positive momentum during a period of extreme market collapse, leading to a $500 million liquidation.
According to Coinglass data, Shiba Inu prices have experienced liquidations totaling over $2.2 million, $2.1 million of which came from long-term liquidations. SHIB-related derivatives trading volume recorded a remarkable 147% surge. Nevertheless, open interest decreased by 21% at the same time, which is indicative of the impactful nature of this market downturn.
Whales also played a large role in the recent decline, liquidating heavily during the crash. Whale trading has steadily increased over the past few days, hitting 71 transactions, according to data from IntoTheBlock.
Interestingly, SHIB price surged from the monthly support level as the cryptocurrency market rebounded from its lows as buying pressure increased near the bear market. At the time of writing this report, the ratio of long and short positions has increased and currently stands at 1.3041. This trend indicates growing bullish sentiment in the market, with 57% of long position holders expecting a price recovery.
What’s next for SHIB pricing?
Shiba Inu buyers successfully defended against further declines below the monthly $0.000008 support. As more buyers purchase SHIB near bear markets, the price is showing a steady recovery to regain its previous momentum. At the time of writing, the SHIB price is trading at $0.0000096, down more than 9.6% from yesterday’s exchange rate.
SHIB is experiencing price volatility as it falls below the rising support line. However, a strong recovery in the immediate Fib level indicates a strong defense from bullish traders. If the 20-day EMA rises, SHIB price is likely to remain above $0.00001 again. At this point, bearish traders are expected to strongly resist this uptrend.
In case the price declines from the support level of $0.000008, SHIB price may fluctuate around $0.0000076 for a long period of time. Bearish traders could take advantage if the price breaks below $0.0000066, potentially triggering another wave of liquidations.
A further upward correction could be seen in the coming hours with RSI trading near the oversold zone of 21.