Inflation in the US is turning out to be the major culprit in bringing down the values of the biggest movers in the crypto industry.
Shiba Inu, the second-largest meme coin saw its value decline to a four-month low. While Solana entered into the ‘red’ zone when its value dropped massively to several months low standard.
Even the digital currency markets are struggling to withstand the huge impact occurring from the rising tide of inflation in the US.
Biggest Movers at Lower Ebbs
In reaction, crypto markets dropped massively while afflicting even far more damage on the biggest movers of the industry such as Solana (SOL) and Shiba Inu (SHIB).
When inflation hit the crypto market on Thursday, the first major blow was taken by SHIB. It saw its value drop to a level that the coin hadn’t seen for the past four months.
It was expected that the consumer prices will not exceed 8.1%, however, it went up to even 8.2%.
Consumer Price Index Impact on SHIB
The sudden increase in the consumer price resulted in a significant intraday low of approximately 8% for the SHIB/USD which went down to $0.000009385 from 0.000001025.
At this price, the meme coin swapped hands exactly on 21st June 2022 which means that the support point for SHIB had been breached.
As a further consequence, the support level of SHIB too has gone below the 14-day Relative Strength Index (RSI).
For the time being RSI can be recorded @ 29.33 which means that the index is sliding deeply into the ‘oversold’ regime.
Market Shift Impact on SOL
Bullish indicators, which were earlier apparent, in SOL’s markets have now been totally eliminated today.
This elimination has happened because SOL has gone back to the lowest price level which the coin had lastly seen in June this year.
After hitting a price level of US$ 31.28, which was the intraday high on 13th October 2022, SOL’s value dropped at the value of US$ 28.20 today.
As was the case with SHIB, SOL too saw its value dropping at a level which it had last seen exactly on the 18th of June, 2022.
Moved Into the ‘Red’ Zone
Currently, Solana’s recent value decrease has pushed the coin into the ‘red’ zone as the coin had lost its 25-day average movement.
It wouldn’t hence be wrong to apprehend that the market for SOL would be bearish and may result in further value drops very soon.
RSI’s Present State
Currently, the RSI index is wobbling towards 34.00 which is regarded as the break-even point.
In case this break-even point is broken then the further negative impact will be apparent in the bearish. As a result thereof, the bearish will significantly mount the pressure of selling off.