Shiba Inu dips 1.84 percent as volumes plunge 59 percent

Shiba Inu (SHIB) has formed a closely watched “golden cross” on its short-term price chart, with the 50-period moving average surpassing the 200-period moving average on the two-hour timeframe. However, this traditionally bullish technical signal coincided with a wave of profit-taking following recent sharp price gains, raising questions about the signal’s staying power.

Pullback follows rapid price rally

SHIB’s price climbed steadily from June 11 to June 15, delivering five days of upward momentum. This rally was quickly met by increased profit-taking, pushing the price down. At the time of reporting, SHIB had dropped 1.84 percent in the previous 24 hours to $0.000004937, marking the second consecutive day of retreat since June 15.

Shiba Inu, built on the Ethereum blockchain, is widely known as a major meme coin. The recent price weakness is not solely due to SHIB-specific developments; the broader mood of caution in the crypto market is also pressuring the token.

FOMC decision keeps markets on edge

The latest drop in SHIB mirrored investors reducing risk in the run-up to the Federal Open Market Committee (FOMC) interest rate decision. Market participants are watching closely as the Fed approaches its first meeting under new chair Kevin Warsh. Expectations point toward interest rates remaining unchanged.

Glossary: The FOMC is the committee of the US Federal Reserve responsible for interest rates and monetary policy. Financial markets keep a close watch on these meetings due to their influence on dollar liquidity and appetite for risk.

After eight years of pricing in signals from Jerome Powell, investors are closely parsing Warsh’s communication style. As a result, not only the headline policy decision, but also the accompanying statement and subsequent guidance, are expected to affect markets and asset prices.

Trading volumes collapse in SHIB and crypto at large

At the time of writing, the broader crypto market remained in negative territory, showing a clear slowdown in trading activity. Crypto derivatives volumes fell 16.56 percent in the last 24 hours, dropping to $165 billion. Total open interest also fell, decreasing 2.66 percent to $110 billion.

Shiba Inu mirrored this pattern. On spot exchanges, SHIB’s trading volume plummeted 45.28 percent in the last 24 hours to $53.9 million. In the derivatives market, SHIB’s volume fell an even steeper 59.03 percent to $65.64 million. Despite this slowdown, open interest in SHIB derivatives rose 2.98 percent to $35.39 million, indicating some traders keeping positions open even as trading activity dropped.

Altcoins see strongest selling pressure in five years

Market weakness was also apparent across the broader altcoin space. According to data from CryptoQuant, the selling pressure in altcoins on spot exchanges has surged to its highest level in five years. This marks the fifteenth consecutive month of net selling on these platforms.

The sustained trend of heavy selling and falling volumes underlines the cautious sentiment gripping both Shiba Inu and the wider cryptocurrency market as a whole, putting the longevity of technical signals like the recent “golden cross” into doubt.

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