The Following Are the Top 3 Reasons for Shiba Inu’s Decline Today

Despite yesterday’s attempted recovery, Shiba Inu is still trading below the important 50-day EMA due to the Israel-Iran situation and market crash.
Since April 9, Shiba Inu, like the rest of the crypto market, has been on a downward trend. It has dropped 24% from its opening price on April 9 and has broken through multiple crucial support levels as prices collapsed. It is currently trading below the psychological support level of $0.000022.
There was some hope in the market yesterday as Bitcoin retested the $59,700 support and Ethereum touched the $2,960 level. Both assets saw significant recoveries, leading to a positive response from the rest of the market, including Shiba Inu, which closed the day with a 3.31% gain.
However, bearish pressure has returned today, resulting in a 3.82% drop in SHIB’s price. This renewed selling pressure is due to various factors, including unfavorable macroeconomic conditions and geopolitical tensions.
One factor affecting the market is the potential delay in rate cuts by the Federal Reserve due to high inflation. Officials are now suggesting that any reductions may be postponed until 2025, which is a reversal from previous statements. Additionally, large-scale asset sales, including $90 million worth of Bitcoin outflows from Grayscale Bitcoin Trust (GBTC), have contributed to the market downturn.
The tension between Iran and Israel is also impacting the market. Israel recently responded to an attack from Iran, which has led to increased geopolitical tensions. Market declines have been triggered as investors pull out their funds to hedge against any economic response to the situation.
Despite a recovery attempt, Shiba Inu is still facing downward pressure. It has seen a 6.33% rise in derivatives volume in the past 24 hours, but most of this volume comes from traders betting on further declines. The long/short ratio has dropped to 0.9623, indicating a bearish sentiment.
Shiba Inu experienced a sharp decline this morning, dropping 8.5% from midnight to 3 AM (UTC) and reaching a low of $0.00002088. Although there has been a recovery from this crash, Shiba Inu is still trading below the pivotal 50-day EMA at $0.00002327, indicating a short-term bearish trend. It has been below this EMA since April 13.
Currently trading at $0.00002185, Shiba Inu is also within a symmetrical triangle pattern. Breaking above the upper trendline of this triangle and reclaiming the 50-day EMA could give the bulls the strength they need for a price increase.
Disclaimer: This article provides informational content and should not be considered financial advice. The author’s opinions expressed here do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.