Potential 20% Drop for Shiba Inu (SHIB): What Triggers It?

• Unexpected Downturn in the Cryptocurrency Market with Shiba Inu (SHIB) Anticipating a 20% Drop
• Shiba Inu Adds Zero, More Declines Expected Amidst Current Pattern
• Impressive Burn Rates Coincide with Sharp Downturn
• SHIB Trends Inside Ascending Parallel Channel
• The Relative Strength Index (RSI) Drops Below 50

Unexpected Downturn in the Cryptocurrency Market with Shiba Inu (SHIB) Anticipating a 20% Drop

Today's cryptocurrency market experienced an unexpected downturn, with Shiba Inu$0.000010 -2.05% (SHIB) potentially facing a massive 20% drop. After breaking out of a descending resistance pattern, the meme coin has continued to decline since mid-December. At present, SHIB has seen a significant 9% drop, trading at $0.00000957, as per CoinMarketCap data. This drop has added another zero to its price in the past week. Despite this, there's potential for a rapid recovery in the meme coin's pricing.

Shiba Inu Adds Zero, More Declines Expected Amidst Current Pattern

The digital asset sector received a jolt as speculation arose over the potential rejection of a Spot Bitcoin$42,260 -0.64% ETF, causing many tokens to plummet. This resulted in more than $540 million being liquidated from the industry within a mere four hours.

The meme coin market was also impacted. In addition to its losses, Shiba Inu (SHIB) may face an additional 20% decline. The coin's losses today came on the heels of an upward trend that had been in place since June, when it priced at a low of $0.0000054. In November, after 480 days, it managed to break out from a descending resistance.

Impressive Burn Rates Coincide with Sharp Downturn

The sudden downturn coincided with impressive burn rates for the asset in the last 24 hours. Over 12 million SHIB were burned, marking a 300% increase. However, overall sentiment towards Shiba Inu remains bearish when all data is taken into consideration.

SHIB Trends Inside Ascending Parallel Channel

BeInCrypto reports that SHIB has been trading inside an ascending parallel channel since June of 2023. It also indicates that the meme coin broke from a symmetrical triangle pattern, potentially signifying an end to the asset's upward momentum. Presently, it's already nosedived to the support level of $0.0000095.

The Relative Strength Index (RSI) Drops Below 50

The Relative Strength Index (RSI) has also dropped below 50, which signals that the asset is under threat of falling to $0.0000075. However, assuming it holds steady at its current support level, it might see a 35% increase to the resistance line at $0.0000013.

Edited by Jonathan Stoker