Shiba Inu (SHIB) Price at Risk as Bulls Lose $1.4 Billion Support

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Published: Jun 19, 2024, 01:46 GMT+00:00

Key Points:

Shiba Inu price fell below the critical $0.000020 support level on June 18, amid widespread market liquidations.
On-chain data shows that SHIB has recently lost a $1.4 billion support cluster, a move that could cause further downside
The Relative Strength Index (RSI) data shows that SHIB momentum is now approaching oversold territories.

Shiba Inu Weekly Timeframe Losses Approaches 20%

Shiba Inu’s price has witnessed considerable drawdown in the past few days, bringing the meme coin to a multi-month low. As this happened, investors suffered, with many potentially losing their shot at profits.

As visible in the Global In/Out of the Money (GIOM) indicator, about 66.75 trillion SHIB was bought between $0.00002100 and $0.00002500. This supply, worth $1.38 billion, would have turned profitable soon had SHIB remained consolidated.

However, as the meme coin broke below the consolidation zone, this possibility took a hit, as Shiba Inu’s price has now lost the $0.000020 support level.

Shiba Inu GIOM. Shiba Inu (SHIB) GIOM. Source: IntoTheBlock

Substantiating this is the Relative Strength Index (RSI), which is currently in the bearish zone. The RSI is a momentum oscillator used to measure the speed and change of price movements. It ranges from 0 to 100, indicating overbought conditions above 70 and oversold conditions below 30.

Shiba Inu Price Action vs SHIB RSI | Source: TradingView

The indicator is currently below the neutral mark at 50.0, with bearishness pushing it lower. As a result, the RSI is currently at October 2023’s levels, marking an eight-month low.

SHIB Price Prediction: Further Downside Likely

Shiba Inu’s price had been consolidated within $0.00002835 and $0.00002093 for almost two months. While investors expected a break out of this zone, SHIB broke below it. At the moment, the altcoin is changing hands at $0.00002084.

The above conditions point to further decline, and Shiba Inu’s price could drop to lows of $0.00001600 or $0.00001473.

Shiba Inu Price Analysis.Shiba Inu Price Analysis. Source: TradingView

However, the consolidation will likely continue if $0.00002093 is reclaimed as a support floor. Consequently, the investors can regain a shot at reclaiming their profits, and the bearish thesis can also be invalidated.

About the Author

Ibrahim Ajibadeauthor

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.