Shiba Inu has had a hard time holding on to the value that it had garnered in the bull run of 2021. Along the way, there have been utility and use cases being put forward for the digital asset but even that has not helped it retain its value. Now, the meme coin has fallen below an important technical level, triggering sell signals.
Shiba Inu Falls Below $0.00001
Over the last couple of months, the price of SHIB had continued to trend above $0.00001. This level had become important over time as bulls had built up support for the meme coin here. In other words, $0.00001 became the price for bears to beat, and now they have.
In the early hours of Thursday, the price of Shiba Inu had inevitably declined below $0.00001. It comes as no surprise since the cryptocurrency was only following the general market trend that had triggered losses in the market over the last 24 hours. SHIB had been one of the worst-hit among the largest cryptocurrencies as it recorded a 7.66% decline during this time.
SHIB price drops below $0.00001 | SourcE: SHIBUSD on TradingView.com
This puts SHIB firmly below its 50-day moving average and the next support level now seems to be forming just above $0.000008. The loss in value has also seen the meme coin lose its 14th place on the top cryptocurrencies by market cap, which is now occupied by Iron (TRX).
Time To Jump Ship?
As expected, the fall below $0.00001 has begun to trigger sell-offs in the market. The most notable of these has been a whale who seems to have dumped trillions of tokens. At the time of the transaction, the 2.8 trillion tokens were worth an estimated $27.7 million and were transferred to another wallet. So either the whale had moved the tokens for safekeeping or they had sold off the tokens. The kicker is that the whale had purchased these tokens about two months earlier, and if it was a sale, they would have taken a massive loss on the tokens.
The dollar value of Ethereum whale holdings has also declined during this time. In the last 7 days alone, their combined holdings are down more than $7 million. This points to some dumping from the large holders but is also a result of the decline in the price of the digital asset.
The crypto market is expected to decline even further from here, which would mean that the SHIB losses might not be over at this point. It is also a meme coin which means it would tank even more than the general market. So Shiba Inu holders need to strap in for a long ride.
Featured image from Finbold, chart from TradingView.com
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