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Shiba Inu’s (SHIB) 16% Plunge Tied to China Tensions May Be Short-Lived

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Global Economic Tensions Affect SHIB

The cryptocurrency landscape has faced considerable volatility as rising trade conflicts between the United States and China sent tremors through international financial markets. Shiba Inu (SHIB) was impacted by the downturn, dropping to $0.00001038 – its lowest point since February 2023 – as investors sought to distance themselves from riskier assets following the announcement of new tariff measures by President Trump.

This significant drop in the meme coin occurred even in light of positive news regarding its ecosystem, such as Shibarium surpassing 1 billion transactions. The layer-2 solution has successfully processed over 10.3 million blocks since its inception, averaging about 4.4 million transactions per day, solidifying its position as one of the fastest-growing networks on Ethereum.

Technical analysts have observed that SHIB may have established a potential double-bottom pattern around the support level of $0.00001050. Recent trading activity is hinting at a recovery, with the asset regaining the $0.00001097 level alongside increasing volumes. Nevertheless, SHIB’s open interest has decreased by $454 million since January, and the funding rates have turned negative, indicating persistence of short-term bearish sentiment. There remains a possibility of moving toward the resistance zone at $0.00001150 if the current support sustains, as analyzed by CoinDesk Research’s technical model.

Key Technical Insights

  • On April 7th, SHIB saw a 16.2% drop from $0.00001239 to $0.00001038. Notably, trading volumes during this decline were remarkable, surpassing 3.6 billion.
  • A distinct double bottom pattern has emerged around the support level of $0.00001050, which has facilitated the formation of an upward trend channel with resistance at $0.00001108.
  • Current price movements suggest bullish momentum, as SHIB has recovered to the $0.00001097 level, recording consecutive higher lows.
  • After reaching a trough of $0.000010939, the asset established a higher low at $0.000010949, followed by a notable climb to $0.000010985, translating to a gain of 4.2% from the session’s lowest point.
  • An ascending channel has formed, with support located at $0.000010965. Increased trading volume during upward movements, especially the notable spike of 29.8 million at 09:08, bolsters bullish momentum.
  • Recent price consolidation within the range of $0.000010970 and $0.000010973 implies accumulation, potentially leading to further movement toward the resistance level of $0.000010990.

Please note: This content was generated using AI tools and has undergone a review process to ensure accuracy and compliance with established standards. For additional information, refer to the full AI Policy. This article may also reference external sources, as appropriate.

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