Saad Ullah
The Shiba Inu (SHIB) cryptocurrency is facing severe downward pressure amid the broader market decline. During the extended crypto market sell, its price touched lows of $0.0000108-off.
SHIB (SHIB) Continues Four-Day Decline Amid Broader Market Turmoil
Dog-themed cryptocurrency Shiba Inu (SHIB) faces significant downward pressure as part of a broader market sell-off that began over the weekend and continued into Monday's session. The bearish momentum has driven cryptocurrency prices considerably lower, with SHIB falling for four consecutive days since March 7. After reaching highs of $0.000013, Shiba Inu plummeted to lows of $0.00001142 on March 10, extending its downtrend further.
Macro Concerns Weighing on SHIB (SHIB) Rather Than Crypto-Specific Factors
While some investors expressed disappointment regarding an executive order that established a U.S. Bitcoin reserve and digital asset stockpile late last week, analysts indicate that macro uncertainty is the primary driver behind Monday's accelerated downward move. The sell-off in U.S. equities intensified on Monday, with the S&P 500 dropping another 2.7% and the Nasdaq 100 losing 3.8% — its worst day since 2022. Without a crypto-specific catalyst, these broader economic concerns are likely to continue weighing on cryptocurrency prices, including SHIB, in the near term.
SHIB (SHIB) Approaches Critical $0.00001 Support Level
At the time of writing, SHIB was down 8.15% in the last 24 hours to $0.0000117 after touching intraday lows of $0.00001082. According to CoinGlass data, the cryptocurrency market has seen $957 million in liquidations over the last 24 hours, highlighting the severity of the current downturn. The recent price action suggests that SHIB may be on the verge of adding an extra zero to its price tag, especially if it dips below the crucial $0.00001 level.
Historical SHIB (SHIB) Support Zone Faces Significant Test
Technical analysis reveals that the lower support near $0.0000108 has previously saved SHIB's price from adding an extra zero to its price tag in August 2024, highlighting its significance. The cryptocurrency's bulls have historically rallied to prevent SHIB from crossing below this psychological threshold, with previous attempts consistently foiled. However, the last time SHIB traded with five zeros in its price tag was in February 2024, showing that this support level has been tested recently.
Persistent selling pressure in the equities market fueled the worsening crypto market conditions into the early Tuesday session. This synchronized decline across multiple asset classes suggests that a broader risk-off sentiment is currently driving market behavior rather than factors specific to the cryptocurrency sector.
For SHIB holders, the current price action represents a critical juncture. Maintaining support above the $0.0000108 level is essential for preventing further decline. Should this support fail to hold, the price could move toward $0.000099, causing SHIB to add an extra zero to its price tag – a psychological barrier that could trigger additional selling pressure.
The absence of any immediate crypto-specific catalyst suggests that SHIB's price movement will likely continue to be influenced by broader market sentiment in the coming days. With macro concerns dominating market narratives, SHIB traders may need to closely monitor developments in traditional financial markets for clues about potential price direction.
Despite the current bearish pressure, SHIB's historical pattern of finding support at critical levels offers some hope for investors concerned about further price deterioration. The coming trading sessions will be crucial in determining whether bulls can defend the important support zone again or if market conditions will finally push SHIB below the five-zero threshold.
Saad Ullah
