Shiba Inu’s price continued its recent retreat amid waning sentiment in the crypto market amid geopolitical risks.
Summary
- Shiba Inu price has formed a large falling wedge pattern, pointing to a strong rebound.
- The supply of SHIB tokens in exchanges has continued falling this year.
- A rebound may see it rebound to the key resistance level at $0.000010.
Shiba Inu Coin (SHIB) retreated to an intraday low of $0.0000087, down 3.68% for the day and down 25% from its highest point this year. It remains 78% below its 2025 high, with its market cap falling to $4.5 billion.
SHIB declined because of the ongoing crypto market crash that has affected Bitcoin and most altcoins. The crash is happening after Donald Trump announced new tariffs against a few countries, such as Germany and France.
It also happened as Japanese bond yields jumped to the highest level in decades as investors predicted that the Bank of Japan would deliver several interest rate hikes this year.
Shiba Inu price also declined as the burn rate lost momentum and dropped by 98% on Tuesday to just 500,000 tokens. This is after the network incinerated over 30 million tokens a day earlier.
The token has also plunged because of the ongoing Shibarium assets crash. Data shows that the total value locked in its network dropped by 50% in the last 30 days to over $729,000. This makes it one of the smallest players in the layer-2 industry.
On the positive side, however, is that the supply of SHIB tokens in exchanges has continued falling in the past few months, a sign that some investors are accumulating the tokens.
Shiba Inu price prediction: Technical analysis
SHIB price chart | Source: crypto.newsThe daily chart shows that the SHIB price bottomed at $0.00000685 earlier this year and then rebounded to a high of $0.000015 on January 4.
It has remained below the 50-day and 100-day Exponential Moving Averages, a sign that bears remain in control for now.
However, on the positive side, the coin has formed a large falling wedge chart pattern, composed of two converging trendlines. It moved above the upper side of this pattern earlier this year and retested it. A break-and-retest pattern is one of the most common continuation signs in technical analysis.
Therefore, the most likely scenario is that the coin rebounds in the coming weeks, as the two lines have converged. If this happens, the initial target for this forecast is the year-to-date high of $0.000010.
Source: https://crypto.news/shiba-inu-price-major-rebound-rare-chart-pattern-forms/
