Shiba Inu faces Bear Market, But Signs of Recovery Emerge
Shiba inu (SHIB) has seen its value plummet this year, losing $12 billion. Its market cap now stands at $7.4 billion. This decline mirrors the struggles of Bitcoin (BTC) and other meme coins, fueled by worries about a possible U.S. recession.
Though, there are hints that SHIB’s price drop might be nearing its end. One key factor is the surge in coin burning. In the past 24 hours, the burn rate spiked by over 62,000%, according to ShibBurn. A single user sent nearly 460 million SHIB coins to a dead wallet. Since its launch, over 410 trillion SHIB coins have been burned, reducing the circulating supply to about 584 trillion.
SHIB’s price could also get a boost from broader economic trends. The stock market may recover after recent falls caused by trump’s tariff policy. Historically, both stock and crypto markets drop during risky times but recover quickly. As an example, they crashed after COVID-19 but bounced back soon after.
A potential game-changer is the upcoming Federal Reserve interest rate decision. If recession risks rise, the Fed might cut rates, benefiting SHIB, Bitcoin, and other cryptos.
Technical analysis suggests SHIB may soon see a strong bullish breakout. The daily chart shows a falling wedge pattern, with two descending trendlines converging at $0.00001260. This price is a crucial support level. The Relative Strength Index and Percentage Price Oscillator also show bullish signs.
thus, SHIB price could surge to $0.000020, a 60% increase from current levels.
