Why did Shiba Inu drop below the $0.000030 level?
Shiba Inu has been underperforming over the past few hours and risks dropping lower if the bearish trend continues.
Shiba Inu is one of the worst performers amongst the leading cryptocurrencies so far today. SHIB has lost more than 3% of its value in the last 24 hours and is currently trading around $0.00002921 at press time.
There is no major catalyst behind SHIB’s latest poor performance. The broader cryptocurrency market has been underperforming over the past few days, with more than $300 billion wiped out from the market during that period.
The bearish trend saw Bitcoin lose its position around the $45k region and currently trades around $42k per coin. Ether, the second-largest cryptocurrency by market cap, has also lost its position above $3,000 and currently trades around $2,800 per coin.
Shiba Inu is currently the 14th-largest cryptocurrency by market cap after falling behind Binance USD (BUSD) and Polkadot. If the current trend continues, SHIB’s value could drop lower before the end of the week.
Key levels to watch
The SHIB/USD 4-hour chart is one of the most bearish charts amongst the top 20 cryptocurrencies by market cap. The technical indicators show that SHIB is currently underperforming, and its value could drop further soon.
The MACD line has dropped below the neutral zone following SHIB’s latest poor performance. Shiba Inu has lost more than 12% of its value in the last seven days, higher than most of the leading cryptocurrencies.
The 14-day relative strength index of 44 shows that SHIB could enter the oversold region if the bearish trend continues.
SHIB could drop below the first major support level at $0.00002677 if the current market conditions persist. In the event of an extended bearish run, SHIB could drop towards the second major support level at $0.00002153 over the coming hours or days.