Shiba Inu (SHIB), the leading meme coin on the Ethereum network, has experienced a significant market value decline, erasing $600 million within a mere nine hours. This rapid drop has pushed its market capitalization down from $5 billion to $4.39 billion, according to data from CoinMarketCap. Currently, the price of SHIB has fallen to $0.0000074 USDT, raising concerns among traders who might be considering this level a potential buying opportunity.
The sell-off is not merely a result of market inertia; over $120 million in trading volume was recorded during this downturn. This indicates that sellers were able to execute their trades without difficulty, but there was insufficient buying interest to stabilize the price. As the market cap moved in tandem with the price decline, the continuous exchange of coins highlighted a clear lack of demand.
This downward trend was preceded by several unsuccessful attempts to regain upward momentum earlier in the week. Each recovery effort was thwarted by previously established resistance levels that had once served as support. As the selling pressure intensified, SHIB”s price approached the lower end of its recent trading range, leaving little between it and even lower price points.
From a broader perspective, the current scenario reflects the ongoing struggle of SHIB within the post-hype environment following last year”s speculative surge. The price is now nearing a critical threshold at $0.0000067, an area that has attracted buyers in the past. Increased trading volume at these levels could lead to a quicker downward movement if demand continues to falter.
On the supply side, there have been no significant changes, with the circulating supply of SHIB remaining around 589 trillion. Despite some burn activity, it has not sufficiently influenced the price in a positive manner. With stable supply and diminishing demand, SHIB continues to be pushed back towards key price levels where previous buyers have shown interest. This makes the $0.0000067-$0.000007 zone crucial for the future trajectory of the Shiba Inu coin.
