Shiba Inu Falls 4.5% as Crypto Markets Lose $515M; Fear Index Hits 14
Shiba Inu (SHIB) plunged 4.52% to $0.00000556, hitting an intraday low of $0.00000544 as broader crypto markets experienced heavy selling and more than $515 million in liquidations over 24 hours. SHIB’s seven-day decline reached roughly 14.6%. The sell-off followed a hotter-than-expected U.S. producer price index (PPI) print, a pullback in AI and tech stocks, and rising macroeconomic uncertainty — factors the Shiba Inu team member Lucie described as a “classic risk-off day.” The Crypto Fear & Greed Index registered 14 (extreme fear), signaling low appetite for speculative positions. Technical indicators show SHIB’s RSI dipping below 30 on lower time frames (oversold), suggesting a higher probability of a short-term relief bounce or “dead cat bounce.” Key resistance sits at $0.000007 (50-day moving average) and $0.00000949 (200-day moving average); these levels must be cleared for a sustained recovery. Traders should monitor macroeconomic data, risk sentiment, and liquidity flows for short-term trading opportunities and potential volatility.
Bearish
The news is bearish for SHIB and short-term crypto markets. A 4.5% drop with $515M in liquidations and a Fear & Greed Index reading of 14 indicate elevated downside pressure and risk aversion among traders. The immediate catalysts — hotter-than-expected PPI, tech/AI stock pullbacks, and rising macro uncertainty — are classic drivers of risk-off moves that hurt rate-sensitive and speculative assets like SHIB. Technicals reinforce caution: RSI below 30 on shorter time frames signals oversold conditions that may produce short relief bounces, but meaningful trend reversal requires a break above the 50-day ($0.000007) and 200-day ($0.00000949) moving averages. Historically, similar macro-driven sell-offs produce high intraday volatility and short-lived rebounds rather than sustained recoveries until macro data and risk sentiment stabilize. For traders: expect heightened volatility, possible short-term bounce opportunities for scalp longs or short-covering, and increased risk for leveraged long positions. Monitor macro prints, equity tech performance, on-chain outflows, and liquidation metrics before increasing exposure.