Shiba Inu Price Crash

Shiba Inu’s price has entered a bear market this year, resulting in a loss of $12 billion, with a current market cap of $7.4 billion.

The decline of Shiba Inu (SHIB) coincided with falls in Bitcoin (BTC) and other meme coins, fueled by concerns about a potential self-induced recession in the U.S.

However, there are indications that the ongoing SHIB price drop might be coming to an end. Recently, the burn rate of SHIB coins has surged dramatically, increasing by over 62,000% in just 24 hours, according to ShibBurn.

This spike was mainly due to a single user’s action, who sent nearly 460 million SHIB coins to a dead wallet. In total, over 410 trillion SHIB coins have been burned since the token’s inception, reducing the circulating supply to about 584 trillion.

Shiba Inu’s price could also see a positive shift due to macroeconomic factors. The stock market might rebound after recent lows caused by Trump’s tariff policies.

Historically, both the stock and crypto markets tend to decline when risks increase, but they often recover shortly after. For instance, markets dropped sharply after COVID-19 was declared a pandemic, but they bounced back soon after.

A potential key event could be the upcoming Federal Reserve interest rate decision. As recession fears grow, the Fed may indicate further interest rate cuts this year. Generally, Shiba Inu, Bitcoin, and other cryptocurrencies perform well when the Fed is lowering interest rates.

Shiba Inu Price Technical Analysis

Technical indicators suggest that SHIB may be on the verge of a strong bullish breakout this year. The daily chart reveals that Shiba Inu has been forming a falling wedge pattern, characterized by two descending and converging trendlines.

These two trendlines have converged at $0.00001260, which aligns with the lowest swings of July, August, and September of last year, establishing a crucial support level.

The Relative Strength Index (RSI) has moved slightly above the descending trendline connecting the highest swings since December last year. In addition, the Percentage Price Oscillator has formed a bullish crossover.

Accordingly, Shiba Inu’s price is likely set for a strong bullish breakout, with the next psychological target being $0.000020, representing a 60% increase from the current level.