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The cryptocurrency market is trading in the red in the early Thursday session, with assets, including Shiba Inu, extending their losses since the start of the week.
Bitcoin and Ethereum experienced resistance after reaching key price levels; major cryptocurrencies tumbled more than 5% as traders booked profits following a recent rally.
The larger crypto market rose with risk assets last week, aided by macroeconomic tailwinds and increased investor optimism, although evidence suggests cooling for certain overheated sectors. The Crypto Fear & Greed Index reached 73 on Wednesday, often associated with overheated conditions, before slightly moderating to 70 currently.
According to CoinGlass data, $361 million have been liquidated on the crypto derivatives market over the last 24 hours. The majority of this, $290 million, were longs or bullish traders betting on price increases, while shorts liquidation totaled $68.25 million.
Shiba Inu was not exempt from the bearish pressure, extending its drop from Wednesday's high of $0.0000167 into the second day. Following the price drop, SHIB reached $0.000015; at press time, SHIB was down 5.92% in the last 24 hours to $0.000015 after dropping to an intraday low of $0.00001476 but up 11% weekly.
103 trillion SHIB now in focus
Shiba Inu rallied sharply in the past week, rising six days from May 5 to May 10. However, the rally encountered resistance near the $0.000017 range, and the SHIB price subsequently slowed. Since May 11, SHIB has marked four out of five days in red, including today.
A price surge to highs of $0.00001764 was cut short on May 12 amid a drop on the broader crypto market.
Given the current profit-taking, the focus has shifted to a key support where 103 trillion SHIB are being held, according to on-chain data.
According to IntoTheBlock data provided by Sentora, next to where SHIB trades presently is a support range between $0.00008 and $0.000014, where 103.58 trillion SHIB were bought by 362,050 addresses at an average cost basis of $0.000011.
Given the significant concentration of tokens and the number of addresses, this remains a keenly watched zone, with bulls positioned to defend the SHIB price.
Vladislav Sopov
Dan Burgin