Shiba Inu price collapsed to the lowest level since June 2021 as demand for digital coins plunged. The SHIB/USD pair plunged to a low of 0.00000078, which was about 50% below the highest level this week. It has dropped by more than 76% this year, making it one of the worst-performing big-cap coins in the world. Other meme coins like Dogelon Mars, Dogecoin. Tamadoge, and Floki Inu have also retreated.
Why is SHIB price falling?
There are two main reasons why Shiba Inu price is plunging. First, like other cryptocurrencies, Shiba Inu is falling as concerns about the implosion of FTX continued. FTX, the second-biggest exchange in the industry went under. In total, investors have lost billions of dollars in the past few days.
As a result, there are rising fears of contagion in cryptocurrencies increased. Some investors believe that FTX is the equivalent of the collapse of Lehman Brothers. During the Global Financial Crisis, the collapse of Lehman led to worries that the financial industry was on its edge. It was only saved by $700 billion in federal funds.
Second, Shiba Inu price has collapsed because of the ongoing challenges in Twitter. Like FTX, Twitter is also on the brisk as advertisers free and the funding gap widens. Twitter’s revenue is expected to continue falling as advertisers pause advertising. At the same time, Twitter has over $13 billion in debt, meaning that its cost to service the debt will be higher than its revenue.
As you recall, Shiba Inu and Dogecoin prices surged recently after Elon Musk completed his Twitter buyout. The theory was that Musk would introduce cryptocurrencies like Dogecoin to its platform.
Shiba Inu price prediction
In my recent SHIB price forecast, I wrote that the coin had been hit by a knockout blow. I also pointed that the coin had formed a head and shoulders pattern. In price action analysis, the H&S pattern is one of the most bearish patterns in trading. It managed to move below the important support at $0.00000094, which was the neckline of the H&S pattern.
Shiba Inu price has also crashed below all moving averages while the Stochastic Oscillator has moved to the oversold level. Therefore, the path of the least resistance is still bearish, with the next key support level to watch being at $0.00000065. This drop will be confirmed if it moves below the support at $0.00000071. A move above the resistance at $0.00000094 will invalidate the bearish view.
