Shiba Inu has faced a significant decline due to the recent $620 million in liquidations that have hit the cryptocurrency market. This has resulted in a nearly 20% drop in SHIB’s value, signaling a period of extreme volatility. Despite this, there is a noteworthy development to pay attention to.
Currently, SHIB’s Relative Strength Index (RSI) has plummeted to 21, marking a record low for the past year. When an asset’s RSI reaches such levels, it is usually considered heavily oversold, potentially indicating a forthcoming rebound. Historically, extremely low RSI levels have often preceded price recoveries, making this a compelling signal for a possible rebuy opportunity in Shiba Inu.
The $620 million liquidation event has brought about widespread market volatility, with many assets, including SHIB, hitting multi-month lows. It’s crucial to consider this volatility and the potential for a rapid market recovery. From a technical analysis standpoint, SHIB has breached both the 100 EMA and the 200 EMA support levels.
Moving forward, the $0.000012 support level holds immense significance for SHIB’s structural integrity. Failure to maintain this threshold may result in further declines. Despite the current challenging conditions, the extreme oversold condition of the RSI suggests the possibility of a recovery.
Monitoring the RSI levels is advisable during this period of uncertainty. With the current lack of significant buyers in the market, precautions should be taken to avoid major price drops in the near future. Staying vigilant and cautious is essential in navigating the volatile crypto landscape.
