Potential Recovery for Shiba Inu Amid U.S.-China Market Strains

Amid market turbulence due to geopolitical tensions, Shiba Inu is showing signs of recovery while achieving a significant transaction milestone with Shibarium.

What to know:

• President Trump’s tariff plans triggered a market-wide crypto selloff, pushing SHIB to a 13-month low of $0.00001038, even as Shibarium reached a significant milestone of 1 billion transactions.
• China has retaliated with 34% tariffs, exacerbating global trade tensions and leading investors to withdraw from risk assets, including cryptocurrencies.
• SHIB is forming a double bottom pattern around the $0.00001050 support level with bullish momentum as the price recovers to $0.00001097 with increased trading volume.

Global Economic Tensions Impact SHIB

The cryptocurrency market faced considerable turbulence as escalating trade tensions between the U.S. and China rocked global financial markets. Shiba Inu (SHIB) fell to $0.00001038, its lowest since February 2023, amid a flight from risk assets following President Trump’s tariff policy announcement.

Despite the challenging market conditions, the Shiba Inu ecosystem achieved significant progress with Shibarium processing over 1 billion transactions, and averaging around 4.4 million daily transactions since its launch.

Some technical analysts believe that SHIB is forming a double-bottom pattern around the $0.00001050 support level. Recent changes in price show signs of recovery as the asset goes back to the $0.00001097 level with increasing volume. Nevertheless, despite the potential for further increases towards the $0.00001150 resistance zone, short-term bearish sentiment remains due to a $454 million drop in open interest since January and negative funding rates.

Technical Analysis Highlights

• SHIB witnessed a drop of 16.2% from $0.00001239 to $0.00001038 on April 7th, with high trading volumes exceeding 3.6 billion.
• A clear double bottom has formed around the $0.00001050 support level, creating an uptrend channel capped at $0.00001108.
• Current price action indicates bullish momentum with a series of higher lows, reclaiming the $0.00001097 level.
• After a dip to $0.000010939, SHIB reestablished a higher low at $0.000010949, demonstrating a significant upward shift.
• An ascending channel has formed, reinforcing support at $0.000010965, along with increased trading volumes during upward moves, indicating strengthening bullish dynamics.
• Recent consolidation between $0.000010970 and $0.000010973 suggests accumulation before a possible breakthrough at the $0.000010990 resistance level.