Shiba Inu Surges, Faces Risk of Deep Crash
Shiba Inu (SHIB) saw a sharp bounce in price today, surging by 8% in a strong rebound that mirrors a broader recovery in the cryptocurrency market following last week’s selloff. Technical chart patterns show the recent surge in SHIB price may end soon as bears remain in control.
Shiba Inu (SHIB) recently traded at $0.0000113 after bottoming out at $0.0000104 daily. Technical charts show the meme coin moves inside a downward trend channel, which usually leads to price declines. The market analysts predict SHIB will suffer another sharp dip unless it can overcome the descent pattern.
Shiba Inu Faces Key Support Test
The market direction has shifted because sellers pushed the price through the center of its descending price channel. A breach of Shiba Inu below its defined range would lead to a possible 50% price drop until it reaches $0.000055 marked by the 123.6% level.
According to an analyst, the bearish market situation persists despite SHIB’s recent increases in value. The cryptocurrency faces a significant risk of market downturn unless traders push the price above $0.0000157, which matches the 78.6% Fibonacci level.
SHIB technical trends reinforce market predictions that prices will move downward. The MACD indicator produced a sell signal for crypto when its line moved beneath the signal line. The Awesome Oscillator displays more red histogram bars that reveal a rising bearish force.
Shiba Inu Faces Potential Drop Ahead
Recent SHIB value trends show a low point at a 13-month mark driving market-related worries that the price might sink toward $0.000009, putting many holders at risk of losing money.
The situation provides grounds for potential improvement. Per expert evaluation, the coming Ethereum “Pectra” update of May 2022 should boost demand for Shiba Inu and other Ethereum-based crypto assets.
Crypto influencer Mikey.shib on X explains that Ethereum layer-2 networks will gain enhanced bandwidth power through the upcoming Pectra upgrade to benefit the SHIB ecosystem. He outlined:
“That means lower gas fees, faster finality, and smoother scaling for everything in the SHIB ecosystem. ETH wins? SHIB wins harder.”
Greater use of Shiba Inu’s platform helps restart the vital functionality of burning its tokens. SHIB burn rate decreased by 64% because only 4 million tokens left the circulating supply in recent times. Outlooks show that ongoing weak burns within the network system will make recovery harder for SHIB.
Investors closely track SHIB’s potential recovery path because they need to see how its price will interact with important barriers across the overall market. Current market control by bears will determine the outcome for SHIB over the next few weeks.
