The Shiba Inu price is under intense pressure as the cryptocurrency sell-off accelerates. The SHIB is trading at $0.0000071, which is more than 82% below its all-time high and slightly above its all-time low. It has a total market cap of more than $2.8 billion.
What happened: There are three main reasons why the Shiba Inu price has tanked today. First, it has declined because of the ongoing efforts by China to reign in on cryptocurrencies.
Reports say that the government has closed many social media accounts for some of the leading crypto promoters in the country. Shiba is exposed in such a crackdown because social influencers played a role in its rise.
Second, SHIB declined as part of the overall crypto sell-off after the FBI managed to recoup most of the funds that were stolen during the Colonial Pipeline sell-off. As such, investors are criticising the privacy-focused coin. In a note, an analyst at Oanda said:
“The fact that investigators could trace the untraceable and seize it might be undermining the libertarian, free-of-government-control case.”
Finally, there are concerns that the Fed will start a gradual tightening phase if data show that consumer prices continued to rise in May.
The two-hour chart shows that the SHIB price has been under intense pressure in the past few weeks. The coin has dropped by more than 82% from its highest level on record. It has dropped below the 25-day and 15-day moving average. Also, it is hovering near the important support level at $0.0000064.
Therefore, in the near term, I suspect that the coin will keep falling as bears target this support level. On the flip side, a jump above $0.000091 will invalidate this trend.
Follow Crispus on Twitter.
