Dog-themed cryptocurrency Shiba Inu (SHIB) has dropped to the psychological $0.00002 level amid an ongoing crypto market sell-off, stoking questions about what might happen next for the cryptocurrency.
The crypto market faced a significant sell-off in the early Monday session, with Bitcoin slumping to an almost two-month low as investors fled riskier assets.
According to CoinGlass, the sell-off resulted in $544 million in liquidations, with several crypto assets posting significant losses as high as 10%.
Shiba Inu was not exempt from the bearish action, dipping to lows of $0.00001995 in the early Monday session, extending its sell-off from Sunday's high of $0.0000222.
However, according to IntoTheBlock data , SHIB’s next key support levels could help steady its price and prevent further declines. Meanwhile, bullish traders are eyeing resistance levels that may come into play if the market rebounds.
Potential scenarios
Amid the current uncertainty on the market, Shiba Inu’s next critical support lies between $0.000014 and $0.000019. IntoTheBlock reveals that 531.54 trillion SHIB tokens are held by 131,550 addresses within this range.
This massive cluster, per IntoTheBlock data, suggests strong hands that may resist selling at these lower levels, providing buying pressure and preventing SHIB from falling further.
On the other hand, if the overall crypto market continues to decline, SHIB may go below its support levels, particularly below $0.000019. In such a scenario, the $0.000014 might act as a critical line of defense.
However, if SHIB's price holds at $0.00002, bulls might have a chance to regroup for a possible rebound to $0.00025, near the daily SMA 50.
According to IntoTheBlock, immediate resistance levels lie between $0.000021 and $0.000022. In this range, 82.75 trillion SHIB tokens are being held by 65,500 addresses. This zone may act as a selling point for holders looking to take profits, potentially slowing down or capping any recovery rally.
Another possible scenario remains that Shiba Inu might extend its current range trading within its daily moving averages of 50 and 200, at $0.00002499 and $0.00001895.
