Shiba Inu Plunges to $0.00001538 – Is a 12% Rebound Coming?

Shiba Inu (SHIB), the popular dog-themed cryptocurrency, continues to struggle. At the time of writing, SHIB trades at $0.00001538, reflecting a 0.21% daily decline. Over the past week, SHIB has dropped nearly 7%. February has been particularly rough, with an 18.64% decline. The emergence of a death cross on the daily chart suggests further bearish momentum, making traders cautious.

Understanding the Death Cross and Its Significance

A death cross occurs when the 50-day moving average falls below the 200-day moving average. Historically, traders view this pattern as a bearish signal, often indicating extended downtrends or prolonged consolidations. The last time SHIB experienced a death cross was in July 2024, after which the price consolidated near $0.000013. However, when SHIB formed a golden cross in November 2024, it soared to $0.0000334 within a month.

Macroeconomic Pressures and Market Sentiment

Shiba Inu is not alone in this downturn. Broader macroeconomic concerns, including the Federal Reserve’s cautious stance on interest rates, have pressured speculative assets. Bitcoin, the leading cryptocurrency, has struggled to break past $100,000, adding to the bearish sentiment. Altcoins, including SHIB, have felt the impact, facing increased selling pressure. SHIB fell for four consecutive days from February 15 to 18 before experiencing a slight rebound.

Possible Scenarios for Shiba Inu’s Price Movement

*SHIB/USD Price Analysis. Source| TradingView*

SHIB’s price movement depends on two possible outcomes. If the bearish trend continues, the price may seek a bottom near $0.000013. This scenario would likely lead to a prolonged consolidation before a significant price recovery. On the other hand, if buyers regain control, the first major resistance levels stand at $0.0000191 and $0.0000192. A breakout above these levels would indicate renewed bullish strength and potential for further gains.

Key Levels to Watch in the Coming Days

Investors should closely monitor the $0.000013 to $0.0000192 price range. A rebound toward $0.0000192 could suggest that bulls are returning, while a failure to hold above $0.00001538 may signal further declines. The next few trading sessions will determine whether SHIB stabilizes or continues its downward trajectory.

In conclusion, Shiba Inu remains under significant pressure as market uncertainty persists. The recent death cross raises concerns about further downside potential. However, past trends suggest that SHIB could consolidate before making its next major move. Traders should keep a close eye on price levels and market sentiment to identify potential opportunities.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.