Shiba Inu at $0.000005: Historic Low Reached, Where to From Here?

Shiba Inu fell to a never-before-seen-low of $0.00000507 in the intraday session on Friday. The last time Shiba Inu traded near this level was in September 2021, when it reached $0.00000510.

The broader crypto market extended its sell-off on Friday, with several cryptocurrencies, including Shiba Inu, plunging deeper into losses.

In the last 24 hours, $2.44 billion were liquidated in leveraged bets across the crypto market, according to CoinGlass data. A total of $1.9 billion of this figure was long positions expecting the market to rebound, while short positions accounted for $535 million.

Cryptocurrencies have been on shaky ground following a brutal sell-off last October, which sapped market confidence. Selling increased this week in line with an unwinding of leveraged bets and broader market volatility.

Where to from here?

Shiba Inu marked three days of declines from February, with Thursday's drop being the largest as $SHIB fell from $0.0000067 to $0.00000558.

The drop continued on Friday, pushing $SHIB to a rare low of $0.00000507 as it plunged to oversold levels. Shiba Inu afterward rebounded, reaching $0.00000620. Shiba Inu had slightly recovered, also still trading in red, down 3.44% in the last 24 hours to $0.00000615 and down 16% weekly.

Amid the drop, crypto market sentiment fell to its lowest level since the FTX collapse, as the Fear and Greed Index dropped to 9, signaling "extreme fear" as traders adjusted their positioning amid the market crash.

In previous cycles, extreme fear has often coincided with local bottoms, mostly because panic sentiment tends to flush out leveraged traders and short-term holders. This rebound scenario will be watched for in coming sessions.

A positive precedent was set the last time $SHIB traded near the $0.000005 low. Shiba Inu increased 830% in the following month, after hitting a low of $0.0000051 in September 2021 to reach an ATH of $0.000088 in October 2021.

Next key resistances for Shiba Inu lie at $0.0000077 and $0.00001 (the daily MA 50 and 200) in the event that the market rebounds.

In other news, Coinbase is set to launch COIN50 Perpetual-Style Futures, which includes Shiba Inu and allows investors to gain exposure to the top 50 digital assets through a single perpetual-style futures contract.