Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SHIB retested 2021 lows.
- Short-term selling pressure eased.
Memecoins’ allure dimmed amidst heavy macro headwinds in Q2. Like PEPE, which has been hitting new all-time lows, Shiba Inu [SHIB] retested 2021 lows. Investors sought refuge in stablecoins, Bitcoin [BTC] and Ethereum [ETH], after the Binance lawsuit – exposing meme coins to more selling pressure in the past few days.
How much are 1,10,100 SHIBs worth today?
However, Fed watchers are upbeat about a likely dovish stance and a pause on rate hikes from Fed. If that’s the case, the negative sentiment could abate, allowing Shiba Inu to reverse recent losses. But a hawkish stance could devalue the meme-coin further.
SHIB hit the 2021 low
Source: SHIB/USDT on TradingView
Over the past weekend (10/11 June), BTC retested the $25k zone, exposing altcoins and meme-coins to another round of price dumps. SHIB dropped to $0.00000543, dropping below 2021 lows of $0.00000510.
Although the RSI was deep in the oversold zone at the time of writing, the CMF climbed above the zero mark. It suggests that SHIB saw significant capital inflows despite the overwhelming sell pressure.
On the daily chart, the sharp drop witnessed on 10 June closed above the range low of the descending channel (white). It points to bulls’ efforts to defend 2021 lows. Hence, if the Fed decision is dovish, SHIB could rally to the mid-range ($0.00000753) or the range high ($0.00000918).
Conversely, a retest of the 2021 lows could be likely if the Fed takes a hawkish stance. Such a move could tip SHIB to inflict a new all-time low if bearish pressure returns.
Selling pressure eased, but …
Source: Santiment
The past weekend (10/11 June) saw heightened selling pressure, as illustrated by the sharp uptick in supply on exchanges (red) and volume. It shows more addresses moved SHIB to exchanges for offloading.
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At press time, the metric has eased while the supply outside exchanges (yellow) spiked – suggesting a drop in selling pressure and an increase in short-term accumulation. Put differently; some investors are buying the dip.
But sentiment in the futures market has yet to show a decisive bullish bias. The long vs short ratio had a negligible spread, meaning the price could go either direction.
Source: Coinglass
