Broader crypto market saw $336 million in liquidations
Dog-themed cryptocurrency Shiba Inu (SHIB) has seen its price drop from recent highs. Shiba Inu fell significantly in the past week amid broader caution in risk assets. Following a four-day drop, Shiba Inu rebounded from lows of $0.0000185 in Friday's session, extending the recovery to highs of $0.000024 in Saturday's session. The rebound met resistance at this key level, and it began to lose strength.
The majority of crypto assets are currently trading in the red, as Bitcoin dipped in the early Sunday session after nearing the $100,000 level. Bitcoin's decline drove down other cryptocurrencies, and Shiba Inu was no exception.
According to CoinGlass data, the market slide resulted in the liquidation of $336 million in crypto positions, with bullish bets accounting for the majority of this amount, totaling $247 million.
The Federal Reserve rattled markets in recent days, signaling lower interest rate decreases next year. Equity markets took a hit, filtering through to crypto assets, and this spilled over into cryptocurrency assets.
With several markets, particularly those for cryptocurrencies, on edge, some of the steam has come out of assets that have enjoyed significant increases this year.
At the time of writing, SHIB's price was down 7.29% in the last 24 hours to $0.000021, mirroring the ongoing sell-off in the market. This drop has brought the token closer to its critical support levels, which are crucial for maintaining its market stability.
On-chain data highlights key support
According to IntoTheBlock Global In/Out of Money indicator, the next key support level for Shiba Inu lies in $0.000019 and $0.00002, where 20.51 trillion SHIB tokens are currently held by 19,330 addresses.
The range remains significant given the substantial amount of SHIB held at these price points. The concentration of SHIB at these levels suggests that prices could recover if broader market conditions improve.
If this support holds, these levels could provide a buffer against further drops, as holders at these prices may resist selling, stabilizing the price. Technically, these levels lie in the range of Shiba Inu's daily moving averages of 200 and 50 at $0.0000187 and $0.0000254, respectively, suggesting the possibility of range trading except for a break in either direction.
In the last 24 hours, Shiba Inu has seen an 81% drop in large transaction volume, suggesting whales might be remaining on the sidelines awaiting clarity in markets before making significant moves.
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