Despite improving sentiment in global markets thanks to easing trade war tensions and dovish signals from the Fed, Shiba Inu’s price action is flashing red. Technically, SHIB appears poised for a potential breakdown that could slash its value by as much as 50%.
Currently trading around $0.000012, SHIB has seen a modest 16% recovery from last week’s dip to just over $0.000010. But this bounce may be a temporary reprieve. Since peaking at $0.000033 in late 2024, SHIB has been stuck in a grinding downtrend, repeatedly rejected at its 21-day and 50-day moving averages.
Making matters worse is the formation of a descending triangle—a bearish pattern often seen before significant breakdowns. A confirmed close below $0.000010 could trigger a freefall to 2023 lows near $0.000006.
This looming risk is compounded by macro uncertainty. While trade tensions are cooling and the Fed remains supportive, a potential recession still looms large. Consumer sentiment indicators continue to weaken, and meme coins like SHIB—seen as high-risk—could be hit first in a downturn.
However, if SHIB does crash to 2023 levels, it might present a “buy the dip” moment. With Trump’s administration pushing pro-crypto reforms and establishing a national Bitcoin reserve, the long-term backdrop remains supportive. For high-risk investors willing to weather extreme volatility, a long-term SHIB play could still offer explosive upside.
