Shiba Inu's Value Plummets 30%: Can $0.00002 Flip Save the Memecoin?

Shiba Inu, the second-largest memecoin by market capitalization, has experienced a significant decline in value over the past month, shedding nearly 30% of its worth. Despite attempts to maintain a range formation from early January, the downtrend has persisted. At the time of writing, volume indicators suggested that the $0.00002 resistance zone would be crucial for any potential bullish momentum. However, the overall market sentiment remained weak.

The key to reversing Shiba Inu's fortunes lies in its ability to flip the $0.00002 level. This region, a bullish order block from September, has been retested as resistance on 31 January. Since then, SHIB has slumped by another 23%. However, the Chaikin Money Flow (CMF) indicator offered a glimmer of hope, with a reading of +0.02 at press time, after spending the second half of January below -0.05. This uptick could suggest that capital outflows from the market have been slowing down, although they are not yet strongly bullish.

The Visible Range Volume Profile also highlighted the importance of the $0.00002 zone, forming the lower bound of the value area. In the crypto market, where attention goes, money flows. The social volume has been falling since early December when memecoin euphoria lost its grip. The sustained losses pushed the short-term MVRV into negative territory, indicating a potential buying opportunity. Additionally, the Mean Coin Age has trended higher over the past month, further supporting the notion of increased accumulation while short-term holders were facing losses.

Technical analysis suggests that a retest of $0.0000128 would be a buying opportunity. Alternatively, the $0.00002 zone being flipped to support would also offer bulls some hope. However, it is essential to remember that the information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.