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Shiba Inu tested the $0.00000555 level at one point early Saturday as cryptocurrencies intensified an earlier sell-off.
Shortly after testing the $0.00000555 price point, Shiba Inu further fell to an intraday low of $0.00000544, near where it trades at press time.
Cryptocurrencies extended an earlier drop on Friday after a report showed U.S. producer prices rose more than expected, suggesting that inflationary pressures remain, reinforcing bets that the Federal Reserve might remain on hold for the time being.
At the time of writing, SHIB was down 6.43% in the last 24 hours to $0.00000543 following a broader market sell-off, which saw $515 million worth of crypto positions liquidated in the same time frame.
The losses pushed most major tokens into the red on a weekly basis, with Shiba Inu extending its seven-day losses to 16.03%.
Shiba Inu team member Lucie reacts to the ongoing market sell-off, citing three reasons for the drop. Lucie named hotter than expected data, AI and tech stocks pullback and rising macro concerns as key triggers that contributed to the ongoing market sell-off.
Lucie highlights the big picture, describing the market sell-off as "a classic risk-off day." The Crypto Fear and Greed Index remains in extreme fear at 14, indicating cautious sentiment across the market. Lucie added that "When fear rises, crypto feels it harder than most."
What's next?
The RSI, especially on lower time frames, has entered deeply oversold levels, below 30. This indicates the possibility of a relief rally or a dead cat bounce at least in the short term.
The broader crypto market will be watched with respect to Shiba Inu's recovery. The next resistance targets will be $0.000007 and $0.00000949, which coincide with the daily moving averages 50 and 200. Support is expected at $0.000005, where Shiba Inu halted its drop on Feb. 6.
Crypto is just a day away from the highly anticipated March 1 deadline to settle reward provisions for the Clarity Act. Though there is little discussion about it currently, analysts expect it to be the main driver of markets heading into March.
Dan Burgin
Vladislav Sopov
