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Shiba Inu faces severe downward pressure, with recent ecosystem developments fueling pessimism. How low can the SHIB price go?
The broader cryptocurrency market is on a downward spiral, spurred by Bitcoin’s drop to $112,000 on Monday. Meanwhile, the meme coin sector is in focus, particularly with Shiba Inu’s escalating troubles.
SHIB dropped 6% in the past 24 hours to $0.00001207, with $1.50 million worth of positions affected. Over 95% of these positions ($1.43 million) were long positions, adding to the broader market bull wreckage, which liquidated over $1.59 billion.
The pessimism following the hack saw Shiba Inu and other Shib-native tokens correct extensively. SHIB has been on a downtrend since then, with today’s sell-off adding to the losses.
Shiba Inu Struggles to Hold Major Moving Averages
Meanwhile, Shiba Inu now trades below major moving averages on the weekly timeframe, placing it well within bearish territory. After breaking above the 20-week moving averages earlier in the month, analysts predicted it would soar to new heights as long as it stays above.
Analyst SwallowAcademy shared that Shiba Inu would target a rally to the 200-week exponential moving average, currently at $0.00001517, and could further rally to $0.000024 upon breakout. This, however, has not materialized, with SHIB facing rejection around the EMA two weeks ago.
Currently, Shiba Inu trades below major moving averages, such as the 200-day and 50-day, having also fallen below the 20-day MA with its bearish close on Sunday. Staying below them suggests bearish momentum and could pave the way for the meme coin to retest its major support levels.
Will SHIB Add More Zeros?
With prices looking weak, analysis has identified how low Shiba Inu can go. According to MMB Trader, the token could retest two major weekly supports before its next flight to greater heights.
His first target is a retest of the $0.000010 support. Notably, the area has cushioned Shiba Inu from seeing lower prices several times in recent months, and the analyst is keen on a repeat.
If it doesn’t hold, MMB Trader identified the next local support at $0.000006. At the current market prices, a drop to these supports culminates in a 17% and 50.2% retracement, respectively.