The cryptocurrency market started in 2022 where it left off in 2021, with the prices of most coins down by more than 1% over the past 24 hours.
The cryptocurrency market has been underperforming over the past few hours, with the prices of most coins down by more than 2% in the past 24 hours. Bitcoin’s price has dropped below the $47k mark as the leading cryptocurrency continues to struggle below the $50k mark.
Ether is also down by less than 1% and is currently trading above $3,700 per coin. SHIB, the native token of the Shiba Inu ecosystem, is down by more than 1% in the past 24 hours and risks dropping below the $0.000030 level in the coming hours.
The poor performance comes despite the Shiba Inu developers burning more than 125 million SHIB tokens over the past few days. The token burn process is designed to reduce the total number of tokens in circulation, creating scarcity and boosting the price of a cryptocurrency.
Over the past week, SHIB’s value has dropped by more than 14%, and the meme coin could decline further if the current market condition persists.
Key levels to watch
The SHIB/USD 4-hour chart is one of the most bearish amongst the top 20 cryptocurrencies by market cap. At press time, SHIB is trading below its 50-day moving average while the MACD line is below the neutral zone. The RSI of 29 shows that SHIB is facing huge selling pressure and could underperform in the coming hours.
If the bearish momentum continues, SHIB’s price could drop below the first major support level at $0.00003036. In the event of an extended bearish performance, SHIB could drop below the $0.000030 level for the first time since October.
However, the bulls could regain control of the market and push SHIB higher towards the first major resistance level at $0.00004915 over the coming hours.