Shiba Coin, the second-largest meme coin by market value, has been under intense pressure due to the prolonged market downturn. The coin has experienced multiple unsuccessful attempts to recover, mainly owing to factors that adversely affect its mid-term outlook. As it endures a nine-week decline, the question arises: can Shiba Coin break free from this cycle? Current data provide some insights.
What is Causing the Decline?
Shiba Coin’s price has suffered a 5% drop, largely attributed to recent comments by Jerome Powell, indicating that the Federal Reserve’s tight monetary policy might persist for an extended period. The Federal Reserve has two main strategies to tackle inflation: increasing interest rates or delaying the reduction of high rates, both detrimental to the cryptocurrency market. The U.S. economy’s ability to sustain this pressure remains in question.
What Are the Current Market Indicators?
One crucial metric for Shiba Coin, the steady decline in active deposits, is worth noting. This tracks transfers from self-custody wallets to exchange addresses, with a spike indicating potential sales pressure. Currently, this metric is at its lowest in recent weeks, suggesting that investors are less inclined to sell. Previous sales by risk-averse investors have been intense, leaving remaining holders in a wait-and-see mode.
Key Market Insights
– Shiba Coin’s price stands at $0.0000238, above a critical support level at $0.0000209.
– Turning the $0.0000258 region into support could enable testing of the $0.00002835 resistance.
– Failure to maintain key support might lead to increased volatility and disappointment among investors.
– Excessive sales could test the $0.0000147 support level.
The current price of Shiba Inu is above a significant support level at $0.0000209, which has been a stronghold against bearish trends. If Shiba Coin can establish $0.0000258 as support, it might test the $0.00002835 resistance level. Surpassing this could propel the price to new heights. Conversely, losing the key support level could escalate volatility, leading to potential dips to $0.0000147, thereby prolonging the coin’s consolidation within a narrow range.