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Shiba Inu dropped even lower as the cryptocurrency market got hit with an enormous $620 million in liquidations. Such a dynamic obviously did not go unnoticed as it led to an almost 20% drop in SHIB's value. However, there is one thing that you should keep your eye on.
SHIB's Relative Strength Index (RSI) has dropped to 21, a year-over-year record. An asset is usually heavily oversold when the RSI hits this low, which may hint at a future rebound. This is an interesting rebuy signal for Shiba Inu because historically low RSI levels have frequently led to price recoveries.
With $620 million in liquidations, the entire cryptocurrency market is undergoing extreme volatility. Numerous assets, including Shiba Inu, have reached multi-month lows as a result of this massive sell-off. It is important to take into account the market's volatility and the possibility of a quick recovery. The 100 EMA and the 200 EMA are two important support levels that SHIB has broken below, according to the technical chart.
The next notable support level of $0.000012 is a critical threshold for SHIB to preserve its structural integrity. More drops might be on the horizon if this level is not maintained. Even though things right now seem hopeless, the RSI's extreme oversold condition points to a potential recovery.
As usual, keep an eye on the RSI levels being shown right now. There should be no major price drops in the foreseeable future as there might not be enough buyers on the market at this point, but staying cautious is the key.