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Shiba Inu has faced sharp declines in the last 48 hours, with a crucial support now being tested.
SHIB fell by the most in three weeks: on Sunday, Shiba Inu closed the session with a 4.2% drop, hitting a low of $0.00001369. The sell-off worsened early Monday, with Shiba Inu reporting losses of 4.82% according to CoinMarketCap, reaching an intraday low of $0.00001297.
Shiba Inu had attained a high of $0.00001484 after rising for seven consecutive days in a row since Sept. 6. Taken from this high, Shiba Inu has fallen 13% within two days, and the drop now tests the key support at the daily SMA 200.
Shiba Inu's price drop comes as the broader market traded down early Monday in reaction to macroeconomic concerns and profit taking. A total of $425 million has been liquidated across various crypto assets in the last 24 hours, according to CoinGlass data.
Meme coins were among the hardest hit: Dogecoin was down 7.91% in the last 24 hours, and PEPE and Bonk reported losses of nearly 7% as well. Shibarium gas token BONE was down 4.19% following a Shibarium bridge incident over the weekend, which resulted in a $2.4 million token loss.
SHIB tests crucial support
Shiba Inu extended its drop from its Sept. 13 high of $0.00001484 into the second day to a low of $0.00001297, and in the process, tested support at the daily SMA 200 at $0.00001298.
In the coming sessions, it will be seen if Shiba Inu will perform a successful test of support at this key level and hold above it. If this is achieved, Shiba Inu might attempt a return above $0.000013, before the $0.000014 and $0.00001484 highs.
On the other hand, if the recent drop intensifies, Shiba Inu would test the support next at $0.00001279, which coincides with the daily SMA 50 ahead of $0.00001181.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team