Why Is Shiba Inu Price Down Today?

Shiba Inu is seeing some downside today as the price has fallen below support levels. There are many reasons for this downside, some of which are directly attributable to the Bitcoin price. However, as time passes, the prospects for meme coins may not be completely bleak.

Shiba Inu 14% on weekly chart

Last week, Shiba Inu’s price trailed the likes of Bitcoin and Dogecoin, losing most of its gains from the previous week. With the daily drawdown itself, Memecoin fell by around 2%, dropping below $0.000027, a level that served as a key support earlier in the week.

One of the main reasons behind the decline is the collapse in Bitcoin prices as a result of increased outflows from Spot Bitcoin ETFs. This collapse in Bitcoin prices naturally spread to other parts of the market, causing a knock-on effect on altcoins.

Since the sell-off began on Monday, Shiba Inu prices have fallen by more than 14% and remain depressed. At the same time, SHIB’s trading volume has also decreased noticeably. According to CoinMarketCap data, intraday trading volume has fallen by 28% over the past day.

Usually, a decrease in trading volume means that investors are no longer as interested in trading the coin and have moved elsewhere, or may even be waiting for the bearish trend to end. To do. This can have a negative impact on the price of the cryptocurrency, especially if holders start panic selling thinking the price will continue to fall.

It’s not all bad news for SHIB

Despite the negative headwinds that continue to plague memecoin at the moment, it’s not all bad news for Shiba Inu. This is because cryptocurrency analysts believe that the drawdown is temporary and SHIB price is destined to rise higher in the future.

One such cryptocurrency analyst went to the TradingView website and said, overview Their expectations for meme coins. Our analysis shows multiple possible price points at which SHIB could start to rise. However, they explain that the bleeding of the coin needs to stop and the coin can only rise if the selling stops.

The crypto analyst also identified the coin’s “circular price” as $0.00008488. However, the coin still has a lot of road to go as analysts explain that the price needs to fall to $0.00001249 first.

“The correct action would have been to return to that level and exit the retest, but perhaps that left a trap for a repeat cycle. Keep an eye on the $0.00001045 region,” the analyst said. I did.

SHIB price falls below $0.000027 support | Source: SHIBUSDT on Tradingview.com

Featured image from Watcher Guru, chart from Tradingview.com

Related Article

0 Comments

Leave a Comment