The crypto market experienced a significant downturn this week, with the total market cap dropping below $2.14 trillion, more than a 5% decline on a weekly basis. Bitcoin (BTC) led the decline, affecting other cryptocurrencies like Shiba Inu (SHIB), which fell 10.16% to $0.00001266.
Despite the bearish market sentiment and macroeconomic uncertainties, technical indicators suggest SHIB may rebound. The Relative Strength Index (RSI) indicates SHIB is oversold, and the Moving Average Convergence Divergence (MACD) shows a buy signal, suggesting potential for a short-term recovery and enticing traders to buy the dip.
The overall drop in cryptocurrency prices, especially Bitcoin, is largely attributed to the impending repayment of around $8.5 billion in BTC by the defunct Japanese crypto exchange Mt. Gox, expected to start in early July.
For a price recovery, bulls need to push SHIB above $0.000020. If successful, SHIB could rise toward $0.000025. However, if the price continues to fall, SHIB might drop to $0.00001170, and potentially down to $0.000010.
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