Shiba Inu has been through some severe bearish pressure over the last few days and is currently down by about 10% from what it was at the beginning of October.
The ongoing mudslide of the memecoin happened a few days ago after the $11 billion liquidation in the general crypto market.
Two of the biggest memecoins in the world by market cap were the worst hit, with Dogecoin falling about 5% in 24 hours and Shiba Inu falling about 7%.
Both memecoins accounted for a $2 billion cut out of the overall $11 billion crypto trade liquidation.
This month, the bears on Shiba Inu have managed to wipe out several key support levels holding the bulls up. At the time of writing, Shiba Inu auctions were at about $0.00000983. This is a far cry from the range along the $0.00001102 support that the memecoin has held since mid-September.
Interestingly, the RSI on the 4-hour timeframe shows extremely oversold conditions and now sits at a level of 19.4. This raises an important question: "Is this the perfect time to buy some Shiba Inu?"
Asides from the oversold conditions on the relative Strength Index, the cryptocurrency's volume profile shows waning bearish pressure. These two factors combined may mean that the bears are starting to get tired and may experience some trend resistance from the bulls very soon.
However, for safety, it is important to understand that Shiba Inu's price can still be much lower, and jumping blindly into a trade is not advisable.
It is no secret that SHIB is one of the favorite holdings of Ethereum whales. These whales have been observed moving tranches of the memecoin around throughout 2022. In recent times, Whale Alert (a blockchain and whale activity tracker) has caught wind of the whales being at it again.
According to a tweet from the analytics platform, a single unknown wallet has just transferred 2,871,107,075,474 $SHIB into another unknown wallet. In light of past events, this might mean that the whales are gearing up for another move on the memecoin.
Meanwhile, Joe Weisenthal, the co-host of the "Odds-Lots" podcast, has pointed out that the market cap of Shiba Inu is now below the critical $6 billion mark. This is an extensive margin compared to the $40 billion market cap the memecoin had at its peak.
Weisenthal has also suggested that at the rate Shiba Inu's market valuation appears to be shrinking, the price of the memecoin may be in for a "serious bear market" in the future.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)