Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the writer.
- A big move lower, but buyers should be careful about entering the market too early.
- Next week could see more losses if Bitcoin doesn't hold on to the $25,200 mark.
In the last 24 hours, Shiba Inu shed 32% on price charts. During this time, Bitcoin fell about 5% and Ethereal fell about 8%. It appeared that the assets that the SEC designated as values it faced heavy losses, which in turn had a ripple effect throughout the market.
Read Shiba Inu [SHIB] price prediction 2023-24
Shiba Inu was not one of these coins, but the selling pressure behind other altcoins may have caused panic among SHIB holders. Assets like Ethereum Classic, Bitcoin Cash, Avalanche, and many others faced the same scenario.
Bulls Faced Annihilation Amid Selling Pressure
Source: SHIB/USDT on TradingView
On the 4-hour time frame, Shiba Inu has had a bearish outlook since early May. This bearish dominance was even more evident on the daily time frame, as a bear market structure was observed in March.
While the downward movement was not surprising, its violence was. The OBV fell off a cliff and the RSI reached 10 on the 4-hour chart. Both indicators showed enormous selling pressure in a short time.
In addition to missing an important support level at $0.0000079, Shiba Inu also dipped below the $0.0000068 level. Shiba Inu previously traded below this level in September 2021. Further south, $0.0000051 represented the lows for that September.
The Fibonacci retracement levels showed that a bounce towards the 50%, 61.8% or 78.6% levels was possible. Short sellers can wait for a lower time frame trend reversal around these levels before shorting the meme coin. At the time of writing, it is likely that both long and short positions were facing major risks as volatility gripped the market.
Open interest plummeted with prices plummeting
In recent days, open interest has remained stable while Shiba Inu prices have been on the decline. The OI collapsed near $33 million in 12 hours as the SHIB bears erased the support zone at $0.0000078. This showed significant bearish sentiment in the market.
How much they cost 1, 10 or 100 SHIB per value today?
It was not wise to try to catch knives over the weekend. While the worst might be temporarily over for the crypto market, June 13 could lead to more losses in the altcoin market in the event of a BTC nuke.
