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Shiba Inu (SHIB) Faces 16% Decline Amid U.S.-China Trade Tensions: What to Expect Next

The cryptocurrency market is witnessing intense volatility, driven by the escalating trade tensions between the United States and China. This global economic unrest has directly impacted the price of Shiba Inu (SHIB), which recently plunged by 16%, hitting a low of $0.00001038—its lowest point since February 2023. As investors retreat from risk assets, the meme coin’s decline raises questions about its future performance, particularly in light of ongoing developments within its ecosystem.

Understanding the Impact of U.S.-China Trade Tensions on SHIB

The announcement of new tariff policies by President Trump has sent ripples through the global financial markets, prompting a selloff in various assets, including cryptocurrencies. Shiba Inu (SHIB) has not been immune to these market shifts, experiencing a significant dip as investors seek to minimize their exposure to risk. It’s worth noting that despite these market pressures, SHIB’s ecosystem continues to evolve positively.

Positive Developments in the Shiba Inu Ecosystem

In the face of adverse market conditions, Shiba Inu has achieved remarkable milestones within its ecosystem. The Shibarium layer-2 scaling solution has processed over 1 billion transactions, showcasing its robust infrastructure. Since its launch, it has completed more than 10.3 million blocks and is averaging approximately 4.4 million daily transactions, positioning it as one of the fastest-growing networks on Ethereum.

Technical Analysis of SHIB: Signs of Recovery?

Despite the recent downturn, some technical analysts are observing potential signs of recovery for SHIB. The cryptocurrency has formed a double-bottom pattern around the support level of $0.00001050. Recent price actions indicate that SHIB has managed to reclaim the $0.00001097 level with increasing trading volume, hinting at a possible bullish trend.

On April 7th, SHIB experienced a significant 16.2% decline from $0.00001239 to $0.00001038. The selloff was accompanied by unusually high trading volumes exceeding 3.6 billion. However, the emergence of a double-bottom pattern at the $0.00001050 support level followed by an uptrend channel with resistance at $0.00001108 suggests that SHIB is not entirely out of the game yet.

Current Market Sentiment and Future Outlook for SHIB

While recent price action shows bullish momentum, with higher lows being established, the overall market sentiment remains cautious. SHIB’s open interest has declined by $454 million since January, and negative funding rates indicate a prevailing bearish sentiment. Nonetheless, if the current support holds, analysts predict a potential continuation toward the $0.00001150 resistance zone.

The recent consolidation between $0.000010970 and $0.000010973 suggests accumulation, setting the stage for a potential upward movement toward the $0.000010990 resistance level. The increasing trading volume during upward movements—particularly the notable 29.8 million volume spike—confirms a strengthening bullish momentum.

What Investors Should Watch For

For investors looking to navigate the volatile waters of the cryptocurrency market, keeping an eye on both macroeconomic indicators and technical analysis is crucial. The ongoing U.S.-China trade tensions will likely continue to influence market dynamics, affecting not just Shiba Inu but the broader cryptocurrency landscape.

Moreover, as SHIB continues to innovate within its ecosystem and strengthen its infrastructure, these internal factors could play a pivotal role in the cryptocurrency’s recovery. Investors should remain vigilant, ready to act should market conditions shift favorably.

Conclusion: Is SHIB’s Plunge Temporary?

In conclusion, while Shiba Inu’s 16% plunge may be alarming, the cryptocurrency’s foundational strengths and the potential for recovery suggest that it might be a temporary setback. As always, investors should conduct thorough research and consider multiple factors before making investment decisions.

For those interested in expanding their cryptocurrency portfolio, resources on how to buy cryptocurrency can provide valuable insights. Additionally, staying updated on market trends through platforms like CoinMarketCap can help investors make informed decisions.

Disclaimer: This article was generated with AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. This article may include information from external sources, which are listed below when applicable.

External References

• Times Tabloid, “Shiba Inu (SHIB) Coils for a Massive Move: Key Levels to Watch,” published April 5, 2025.
• Times Tabloid, “ChatGPT Predicts Shiba Inu (SHIB) Price for April 30, 2025,” published April 6, 2025.
• CoinGape, “Shiba Inu Price Faces 50% Crash as Bearish Breakout Looms,” published April 7, 2025.
• CryptoPotato, “Shibarium’s Latest Milestone Fails to Stop SHIB’s Nosedive: Details,” published April 7, 2025.
• TheCoinrise, “SUI & SHIB Struggle for Momentum While BlockDAG Mobile Mining Sees Surge to 1.2M Users After Keynote 3,” published April 7, 2025.

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