Shiba Inu’s difficulty in holding onto its 2021 bull market value has led to it losing its wealth. While there were utility cases and other uses for the digital asset, it hasn’t been able to retain its value. The technical levels of the meme currency have fallen to an unacceptable level and this has triggered sell signals.
Shiba Inu Falls Below $0.00001
The price of SHIB has been trending above $0.00001 for the past few months. As bulls have built support here, this level was important. This means that $0.00001 has become the benchmark price bears must beat.
In the wee hours of Thursday morning, Shiba Inu’s price had fallen below $0.00001. This is not surprising considering that the cryptocurrency followed the same market trends as the losses experienced in the markets over the past 24 hours. SHIB was one of the most affected cryptocurrencies, with a 7.66% drop during that time.
The SHIB's price falls below $0.00001 | SourcE: SHIBUSD on TradingView.com
SHIB now stands at a level below the 50-day moving median. However, it appears that SHIB’s next support level is just above $0.000008. Aside from the loss in value, the meme coin has lost its 14th spot on the list of top cryptocurrencies according to market capital. This is currently occupied by Iron(TRX).
It’s time to jump ship
Market sell-offs have begun as expected due to the drop below $0.00001. A whale is the most famous of all, which appears to have disposed of trillions worth of tokens. The transaction involved 2.8 trillion tokens that were estimated to be worth $27.7 million. They were then transferred into another wallet. Either the whale moved the tokens to keep them safe or they sold the tokens. It is worth noting that these tokens were purchased by the whale two months before the sale.
The Ethereum whale holdings’ dollar value has declined over the same period. Their combined holdings have fallen by more than $7million in the past 7 days. It is possible that large holders are dumping their holdings, but it could also be due to the declining price of digital assets.
It is likely that the crypto market will continue to fall further, meaning that SHIB loss might not end at this stage. The meme coin is expected to tank more than the overall market. Shiba Inu owners need to buckle up for the long haul.
Featured image taken from Finbold. Chart by TradingView.com
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