Why is Shiba Inu Coin Price Dropping? Check This Out!

Bittime - On Monday, February 3, 2025, the prices of Shiba Inu (SHIB) and Dogecoin (DOGE) continued to decline after both fell more than 10% the previous day. 

Liquidation Leverage Touches $90 Million Dollars!

This drop has led to the liquidation of more than $90 million from leveraged traders in the last 24 hours. Technical indicators suggest that this downward trend is likely to continue, with the momentum of both memecoins likely moving in a negative direction.

Impact of Massive Liquidation

In the last two days, DOGE and SHIB experienced a decline of more than 17%. This drop triggered a significant wave of liquidations, with more than $80 million in liquidations specifically for DOGE, according to data from CoinGlass. 

DOGE Liquidation

Likuidasei SHIB

Large liquidations like this can create fear, uncertainty, and doubt (FUD) among investors, which in turn can increase selling pressure and cause prices to fall further.

Read too Bitcoin Price Prediction Today February 5

Dogecoin Price Projection

Dogecoin experienced rejection around the 61.8% Fibonacci retracement level on January 21 and has fallen by around 27.8% in the next ten days, closed below the 200-day EMA at $0.31. 

Manish Chhetri

Currently, DOGE is trading at approx $0.23 and if the downward trend continues, it could test the weekly support level at $0.18. Relative Strength Index (RSI) shows numbers 25, which is below the oversold level of 30, indicates strong bearish momentum.

Read too How to Buy Dogecoin (DOGE)

Shiba Inu Price Projection

Meanwhile, Shiba Inu price has broken out and closed below the uptrend formed since early August. In the eight days that followed, SHIB fell by 22.22% and is currently trading at approx $0.000013. 

Manish Chhetri

If the decline continues, SHIB may test the August low at $0.000010. RSI on the daily chart shows the numbers 23, is also below the oversold level, indicating strong bearish momentum.

Read too How to Buy Shiba Inu (SHIB)

Conclusion

With current market conditions and technical indicators showing a negative trend for these two memecoins, investors are advised to remain vigilant and consider the risks before making further investments in these assets.

FAQ

1. What is the main cause of Shiba Inu (SHIB) price decline?

The Shiba Inu price drop was caused by the massive liquidation that occurred in the market, where more than $90 million from leveraged traders was lost within 24 hours. Additionally, technical indicators indicate a strong bearish trend, adding to the selling pressure among investors.

2. Are there any support levels to watch for SHIB?

Yes, if the decline in SHIB prices continues, the support level to pay attention to is $0.000010, which was the low level recorded in early August. This could be an important point to watch for a potential reversal or continuation of the downtrend.

3. What is the current technical condition for Shiba Inu and Dogecoin?

Currently, both Shiba Inu and Dogecoin are showing strong bearish momentum. The Relative Strength Index (RSI) for SHIB is at 23 and for DOGE at 25, both below the oversold level of 30. This indicates that both assets may still have the potential to continue falling before finding a plateau.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Manish Chhetri, Dog-theme memecoins DOGE and SHIB crashes, over $90 million wiped out, Accessed February 4, 2025

Author: IN