Shiba Inu’s price has crashed into a bear market this year, wiping out $12 billion as its market cap dropped to $7.4 billion.
Shiba Inu (SHIB) retreat happened as Bitcoin (BTC) and other meme coins amid concerns about a potential self-inflicted recession in the U.S.
There are signs that the ongoing SHIB price crash may be nearing its end. First, the amount of SHIB coins being burned has surged in recent weeks. According to ShibBurn, the burn rate jumped by over 62,000% in the last 24 hours.
The surge in the burn rate was driven by a single user who sent almost 460 million SHIB coins to a dead wallet. Over 410 trillion SHIB coins have now been incinerated since its inception, leaving the circulating supply at about 584 trillion.
Shiba Inu’s price could also benefit from macroeconomic factors. There’s a likelihood that the stock market will bounce back after recent declines driven by Trump’s tariff policy.
Historically, the stock and crypto markets drop when risks rise but tend to rebound shortly afterward. For example, both markets crashed immediately after COVID-19 was declared a pandemic but recovered soon after.
A potential catalyst could be the upcoming Federal Reserve interest rate decision. With the odds of a recession rising, the Fed may signal additional rate cuts this year. Shiba Inu, Bitcoin, and other cryptocurrencies typically perform well when the Fed is cutting interest rates.
Shiba Inu price technical analysis
Technical indicators suggest that SHIB may be poised for a strong bullish breakout this year. The daily chart shows that Shiba Inu has been forming a falling wedge pattern, characterized by two descending and converging trendlines.
These trendlines have converged at $0.00001260, which coincides with the lowest swings in July, August, and September last year, making the current price a crucial support level.
The Relative Strength Index has moved slightly above the descending trendline that connects the highest swings since December last year. Similarly, the Percentage Price Oscillator has formed a bullish crossover.
Therefore, Shiba Inu price will likely have a strong bullish breakout, with the next psychological level to watch being $0.000020, up by 60% from the current level.