The Shiba Inu price has seen a massive drawdown in the last day as the Bitcoin price lost its support at $65,000. As a result, the SHIB price is down more than 10% in a single day, with what is arguably one of the worst crypto trading days in crypto so far this year. But what is behind this market crash?
Crypto Market Fumbles On FOMC
The crypto market seems to be already reacting to the Federal Open Market Committee (FOMC) meeting which is scheduled to take place on Wednesday, March 20. Expectations are quite lax for the outcome of the meeting. Nevertheless, investors and traders are looking toward the outcome as something that could significantly impact the crypto market.
Alongside this, Bitcoin is also going through an expected correction after what has been a green year, moving from $20,000 to a new all-time high above $73,000. As the Bitcoin price sees a correction through this crash, the likes of Shiba Inu have also seen their prices correct sharply as well.
Shiba Inu’s double-digit losses have triggered a decline toward $0.000052, eliminating around 50% of its gains from the last month. Likewise, the daily trading volume of the meme coin has taken a significant hit as well, with CoinMarketCap data showing a 28.4% crash to bring its daily trading volume to $1.73 billion.
The meme coin is down more than 22% on the weekly chart as well, which has brought its market cap to $14.89 billion. As a result of this, Shiba Inu continues to lag as the 11th-largest cryptocurrency in the world behind rival Dogecoin, which sits in the 10th spot.
What’s Next For Shiba Inu?
For now, the whole crypto market, including Shiba Inu, looks to be following Bitcoin’s lead. This means that any further decline or recovery in the SHIB price will be directly tied to the outcome for Bitcoin, and since BTC is currently in its pre-halving crash, it might continue to struggle until the halving in April.
However, this has not affected the bullish outlook that investors have for the SHIB price as one analyst believes that this is only a temporary setback. Crypto Analyst Javon Marks took to X (formerly Twitter) to reveal that Shiba Inu has shown massive strength since 2023. But there is still more to go.
Marks continues to stand by his breakout target of $0.000081 for SHIB, which from current price levels, would see it do another 350% move to get there. So while SHIB has suffered in the last day, expectations are that it will turnaround soon.
SHIB price drops to $0.00002474 | Source: SHIBUSDT on Tradingview.com
Featured image from TheNewsCrypto, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source link