The cryptocurrency market witnessed a significant downturn recently, with Shiba Inu (SHIB), the second-largest meme token by market capitalization, experiencing a notable decline. In a 24-hour span, SHIB fell by 5%, dropping from $0.000012888 to $0.000012188. This decline contributed to the liquidation of over $1 million in leveraged positions, predominantly long bets, suggesting that market sentiment was leaning bullish prior to the downturn, as reported by Coinglass.
As SHIB’s price dipped, robust resistance emerged at the $0.00001237 level, while the support line was established at $0.00001197. The price movement was characterized by a significant increase in trading volume, with a total of 5.29 trillion tokens changing hands during the decline. This surge in activity indicated an institutional liquidation event that contributed to the bearish price trends observed.
Importantly, the price action of SHIB showcased a break below a previously identified contracting triangle pattern. This pattern was formed by connecting the low points from June 22 and September 1 with the high points from May 12 and July 21. The breakdown from this range signals potential further declines, with analysts eyeing the previous low of $0.00001004 set in June as a possible target.
Throughout the observed 24-hour period, which commenced on September 21 at 15:00 and continued until September 22 at 14:00, SHIB encountered considerable selling pressure. Notably, the most significant price drop occurred early on September 22 at 06:00, when values plummeted to as low as $0.000011975 amidst the high trading volume, solidifying resistance at the $0.000012373 threshold. Conversely, critical support was noted at around $0.00001197, where buying interest appeared to stabilize the asset temporarily.
Despite SHIB’s challenges, the performance of dogecoin (DOGE) was even more pronounced, suffering a loss exceeding 8%. Interestingly, this drop facilitated a recovery in the SHIB-DOGE trading pair from its record lows. The daily Moving Average Convergence Divergence (MACD) histogram for this pair shows signs of shifting toward positive territory, signaling a potential bullish turnaround. This shift could imply that SHIB may continue to outperform DOGE in the upcoming days.
However, while the SHIB-DOGE pair is experiencing a rebound, the broader market sentiment remains cautious. Any sustained upward momentum will require a sustained break above the descending trendline established from the highs seen in March 2024. As it stands, the underlying trend appears to be bearish, necessitating close monitoring of market dynamics in the days ahead.
In conclusion, as Shiba Inu faces downward pressure in an evolving market environment, the fluctuations within the SHIB-DOGE pair provide a glimmer of optimism for some traders. Continuous analysis of support levels and market trends will be vital in understanding the potential trajectory of these meme tokens.
