Shiba Inu (SHIB) Crashes to New Low: Rebuy Signal?

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Shiba Inu fell further as the cryptocurrency market suffered a massive $620 million liquidation. This move clearly did not go unnoticed, with SHIB dropping in value by almost 20%. However, there is one thing to note.

SHIB’s Relative Strength Index (RSI) fell to 21, its highest level on a year-over-year basis. When the RSI reaches this level, the asset is typically heavily oversold and may signal a rebound in the future. Historically low RSI levels frequently lead to price recoveries, so this is an interesting buyback signal for Shiba Inu.

SHIB/USDT Chart (TradingView)

The $620 million liquidation has thrown the entire cryptocurrency market into extreme volatility. This massive sell-off has pushed many assets, including Shiba Inu, to multi-month lows. It is important to consider the market volatility and the possibility of a quick recovery. According to the technical chart, the 100 EMA and 200 EMA are two key support levels that SHIB has fallen below.

The next notable support level, $0.000012, is a key threshold for SHIB to maintain its structural integrity. If this level does not hold, further declines are to be expected. While the current situation looks hopeless, the extremely oversold condition on the RSI indicates a possible recovery.

As always, keep an eye on the RSI levels currently being displayed, as there are not enough buyers in the market at the moment so a big price drop should not occur in the near future, however it is important to remain cautious.

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Armand Sirignan

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