Shiba Inu Price Faces 50% Crash as Bearish Breakout Looms

Shiba Inu price may be on the verge of recording a 50% crash due to a bearish pattern on its daily chart. At press time, SHIB had recorded a slight 5% gain to defend critical support at $0.000010. However, bearish pressure remains present, suggesting that the meme coin may fail to sustain this uptrend.

Shiba Inu Price Faces 50% Crash to $0.0000055 

Shiba Inu price is gaining today after the broader crypto market showed signs of relief after yesterday’s crash that led to more than $1.4 billion in liquidations. However, this SHIB rally may be short-lived as the meme coin fluctuates within a descending parallel channel.

This channel indicates SHIB is forming a series of lower highs and lower lows. The setup exposes the meme coin to significant dips as it suggests that selling pressure has risen significantly when buying pressure remains too low to absorb the sold coins.  

At press time, Shiba Inu had breached the midline of the channel. It now risks a drop to the lower boundary, which will outline a bearish Shiba Inu price forecast. 

Once Shiba Inu confirms a breakout below the lower boundary, it faces a 50% crash to $0.0000055. This price level is also the 123.6% Fibonacci retracement level. The only way that SHIB can defy this bearish thesis is if it rallies past the resistance level of $0.0000157.

However, technical indicators show that bears remain fully in control. SHIB’s MACD indicator flashed a sell signal after crossing below the signal line earlier this week. Meanwhile, the AO histogram bars are growing in length, which also depicts bearish momentum. 

Meanwhile, a recent Coingape article noted that after Shiba Inu price fell to a 13-month low, the next support level will be $0.000009. Such a decline will push many SHIB holders into losses. 

Will the Pectra Upgrade Trigger a Massive SHIB Rally? 

The Ethereum Pectra upgrade may be the key to the next Shiba Inu price rally according to one crypto market analyst. This upgrade is slated to happen in May and might bode well for layer 2 networks created on Ethereum.  

Per Mikey.shib on X, when Ethereum increases the blob count through network upgrades, it will give more bandwidth to layer 2 networks. He added,” 

“That means lower gas fees, faster finality, and smoother scaling for everything in the SHIB ecosystem. ETH wins? SHIB wins harder.” 

Improved network activity will also cause a spike in the SHIB burn rate. At press time, this burn rate had dropped by 64%, with only 4M SHIB tokens being removed from the circulating supply. The dip may impact the meme coin’s ability to recover.