Shiba Inu price joined other cryptocurrencies in a major sell-off as investors reacted to the crisis facing Alameda Research. The SHIB token slipped to a low of $0.000016, which was the lowest level since October 28. It has crashed by more than 30% from its highest level in October. Other cryptocurrencies like FTT, Dogecoin, and Cardano also plunged.
FTT risks remain
Shiba Inu price plunged on Tuesday as investors remained concerned about contagion in the crypto industry. The main concern is about Alameda Research, the company owned by Sam Bankman Fried, the founder of FTX.
During the weekend, it was reported that Alameda’s balance sheet was made up of mostly the FTX token (FTT). FTT is the native currency for the FTX ecosystem and is used to incentivize users by lowering their transaction costs. Alameda’s balance sheet is made up of billions of the FTT token, making it highly illiquid.
As a result, Binance decided to sell its remaining FTX tokens this week. The coin has crashed by more than 40% in the past few days. Investors believe that a major sell-off could have an impact on the broader crypto industry because of the role that FTX plays in the market. FTX has grown to become a crypto empire valued at more than $30 billion. And Alameda has invested in hundreds of companies in the crypto industry.
Shiba Inu price will also react to the upcoming American inflation data scheduled for Thursday. These numbers will provide more details about the state of the American economy and provide more hints about what the Fed will do. SHIB has also crashed as the optimism of Elon Musk’s Twitter purchase wanes.
Shiba Inu price forecast
The four-hour chart shows that the SHIB price nosedived on Wednesday morning as contagion risks remained. As it crashed, it managed to move below the important support level at $0.000018, the lowest level on November 2. This price was also the neckline of the double-top pattern. It has also moved below all moving averages.
Therefore, Shiba Inu price will likely continue falling as sellers target the key support at $0.000015. A move above the resistance level at $0.000018 will invalidate the bearish view.