Shiba Inu (SHIB), the popular dog-themed meme coin, appears poised for further downside after a failed breakout attempt led to a sharp rejection from a crucial resistance zone. According to a prominent crypto analyst, the recent price action suggests a bearish reversal may be underway, and SHIB could revisit its March lows if broader market sentiment remains weak.
A Promising Start That Turned Sour
SHIB opened on a bullish note last week, climbing 4.48% on Monday and surging toward the February high of $0.00001567 before midweek. At the time, many investors hoped this momentum would reignite the parabolic rally seen earlier in the year. However, the optimism proved short-lived.
By Wednesday, SHIB faced a significant rejection at the key $0.00001567 level. This zone previously acted as support in early February but flipped into resistance after the token broke below it on February 24. As a result, Shiba Inu began sliding, retracing 21% from its weekly high.
Analyst Calls Out Fake Breakout
Crypto market analyst Nebraskangooner, in an April 1 post on X (formerly Twitter), attributed SHIB’s steep correction to broader macroeconomic concerns—particularly market uncertainty surrounding Donald Trump’s proposed tariff hikes. He also emphasized the technical weakness exhibited at the $0.00001567 resistance zone.
More importantly, the analyst highlighted a false breakout when SHIB briefly spiked nearly 3% to an intraday high of $0.00001315. This move tricked some traders into expecting a sustained breakout. However, the price quickly reversed course and shed another 6%, confirming the move as a fakeout rather than a genuine breakout.
In the accompanying chart, Nebraskangooner hinted at further downside potential, predicting a likely retest of the March 11 low at $0.00001082—roughly 13% below current prices. He also noted similar trends across other altcoins, suggesting a broader correction may unfold in the crypto space.
Hope on the Horizon?
Despite the current bearish outlook, some SHIB supporters remain optimistic. JD Hatefi, founder of Pawzone and a known Shiba Inu enthusiast, reassured followers that the recent decline marks only a temporary setback. In a tweet, he pointed to the political turbulence surrounding Trump’s so-called “Liberation Day” as a short-term factor holding the market back.
Hatefi expressed confidence in an imminent market rebound, predicting Bitcoin will soar to $150,000. He believes such a surge will drag altcoins like Shiba Inu along, potentially pushing SHIB to new all-time highs once the dust settles.
Related article: Shiba Inu Burn Rate Soars as 1 Billion SHIB Goes Up in Flames
Where SHIB Stands Now
At the time of writing, Shiba Inu trades at $0.00001024, down 2.36% over the past 24 hours. The price remains vulnerable to further declines, especially if macroeconomic pressures persist and technical resistance overpowers bullish attempts.
For now, SHIB investors may need to brace for volatility as analysts weigh the likelihood of deeper corrections before any significant recovery begins.
