Shiba Inu Price Sees 33% Drop but Signals a Potential Rebound

Shiba Inu, the second-biggest meme coin, experienced a significant price drop of 33% from its December highs. However, recent signals suggest a potential rebound for the cryptocurrency.

Underperformance and Shibarium’s Decline

Shiba Inu’s underperformance compared to other popular meme coins like Fartcoin, ai16z, and Dogwifhat can be attributed to the decline of Shibarium, its layer-2 network. Despite nearing the 800 million milestone in transactions, total transaction fees have continued to decline, with a recent low of 640 BONE in fees, valued at less than $300.

This decline has impacted Shiba Inu, as part of the transaction fees is used to burn SHIB tokens. The burn rate has remained under pressure in recent weeks, according to Shibburn.

Potential Comeback and Market Trends

Despite current challenges, Shiba Inu could stage a strong comeback as cryptocurrencies rally. With Bitcoin nearing the key resistance point at $100,000 following encouraging consumer inflation data, the market may experience a surge.

Additionally, the upcoming inauguration of Donald Trump and the start of the Paul Atkins era at the Securities and Exchange Commission may positively impact Shiba Inu’s price.

Shiba Inu Coin Price Analysis

The daily chart shows that the SHIB price formed a hammer or morning star candlestick as cryptocurrencies dived on Monday. This pattern, featuring a long lower shadow and a small body, is often seen as a reversal sign.

Shiba Inu has also formed a falling wedge chart pattern, made up of two falling and converging trendlines. This pattern is generally considered a bullish reversal signal, with breakouts often occurring as the lines converge.

A bullish divergence has been observed as the Relative Strength Index has formed an ascending channel. This may indicate a bounce back for SHIB, potentially reaching last year’s high of $0.000033, which is about 50% above the current level.

However, a drop below the key support at $0.00001853, its lowest level in December, will invalidate the bullish view.

Tips for Shiba Inu Investors:

  • Monitor Shibarium’s performance and its impact on Shiba Inu’s price.
  • Keep an eye on market trends and the performance of other cryptocurrencies.
  • Consider the potential impact of upcoming events, such as Donald Trump’s inauguration and the start of the Paul Atkins era at the SEC.

Stay up-to-date with the latest news and trends in the cryptocurrency market on Global Crypto News.

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