Shiba Inu Price Plummets 15%: What Investors Should Know About SHIB’s Recent Crash

Shiba Inu (SHIB) Crashes 15% in Hours: What Caused the Sharp Reversal?

Shiba Inu (SHIB) has experienced a dramatic price drop of over 15% in just a few hours, stunning many traders and investors. After a bullish breakout earlier this week, SHIB appeared poised for a recovery, driving prices towards the 100-day EMA. The price surged past a key resistance level at $0.00001560, with technical indicators and a spike in whale activity signaling strong momentum. However, the optimism quickly turned into a harsh reality as SHIB’s price plummeted, dropping to around $0.00001326.

False Breakout Triggers Sharp Decline

The sharp decline followed a false breakout, where buying momentum failed to sustain above the resistance levels. This created a liquidity shortage that compounded the issue, as selling pressure overwhelmed the market. As volume increased during the downturn, many short-term traders were forced to sell, driving the price further down. The steep correction has now seen SHIB fall below crucial levels, including the breakout point, erasing several days’ worth of gains in a single candle.

Lack of Support and Deteriorating Momentum

Currently, SHIB is trading just above $0.00001300, but its Relative Strength Index (RSI) has dropped to 47, signaling a loss of momentum. This could indicate further downside potential, with the next support range likely around $0.00001200-$0.00001250. Without sufficient support to withstand selling pressure, SHIB faces a precarious position, as confidence in the market remains fragile.

While SHIB’s earlier bullish breakout generated hope, the sudden and sharp correction has raised concerns about its sustainability. Until liquidity improves and confidence returns, SHIB remains vulnerable to further volatility.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.