Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- SHIB has retested the 2021 lows.
- Short-term selling pressure eased.
Memecoins’ appeal waned amid severe macro headwinds in the second quarter. Like it PEPEthat has reached new lows, Shiba Inu [SHIB] retested 2021 lows. Investors took refuge stable coins, Bitcoin [BTC] and Ethereum [ETH]after the Binance lawsuit – exposing meme coins to more selling pressure in recent days.
How many Worth 1,10,100 SHIBs today?
However, Fed watchers are bullish on a likely easing stance and a pause in Fed rate hikes. If so, negative sentiment could ease, allowing Shiba Inu to reverse recent losses. But an aggressive stance could further devalue the meme coin.
SHIB hit the 2021 low
Source: SHIB/USDT on TradingView
Over the past weekend (June 10/11), BTC retested the $25,000 zone, exposing altcoins and memecoins to another round of price dumps. SHIB fell to $0.00000543 and fell below the 2021 lows of $0.00000510.
While the RSI was deep in the oversold zone at the time of writing, the CMF climbed above zero. It suggests that SHIB saw significant capital inflows despite overwhelming selling pressure.
On the daily chart, the sharp decline closed above the range low of the descending channel (white) on June 10. It points to bulls’ efforts to defend 2021 lows. So if the Fed’s decision is lenient, SHIB could rise to the mid range ($0.00000753) or the high range ($0.00000918).
Conversely, a retest of the 2021 lows would be likely if the Fed takes an aggressive stance. Such a move could tip SHIB to hit a new all-time low if bearish pressure returns.
Selling pressure eased, but…
Source: Sentiment
The past weekend (June 10/11) was marked by increased selling pressure, as evidenced by the strong increase in supply on exchanges (red) and volume. It shows that more addresses have moved SHIB to exchanges for discharge.
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At the time of writing, the statistic has eased as off-exchange (yellow) supply peaked – suggesting a decrease in selling pressure and an increase in near-term accumulation. In other words; some investors are buying the dip.
But futures market sentiment has yet to show a decisive bullish bias. The long vs short ratio had a negligible spread meaning the price could go either way.
Source: Coinglass
