Shiba Inu (SHIB) Price Prediction: SHIB Price Has Plunged into a Deep Bear Market This Month, What's Next?

The Shiba Inu coin price has suffered a deep reversal and moved into a deep bear market this month. On Sunday, it plunged to a low of $0.000015, and technicals point to a crash to $0.00001090, down 32% from its current level.

The Shiba Inu (SHIB) price has suffered a deep reversal and moved into a deep bear market this month. On Sunday, it plunged to a low of $0.000015, and technicals point to a crash to $0.00001090, down 32% from its current level.

The weekly chart shows that the SHIB price has been in a strong bearish trend in the past few weeks. This crash happened after it formed a near double-top chart pattern, a popular bearish sign in the market. The neckline of this pattern is at $0.00001090, its lowest point in September last year.

Shiba Inu price has moved below the 50-week and 25-week Exponential Moving Averages (EMA), a sign that bears are in control. It has dropped below the weak, stop & reverse point of the Murrey Math Lines tool.

Meanwhile, the Relative Strength Index (RSI) and the MACD indicators have pointed downwards. Therefore, the next key level to watch will be at $0.00001090, its lowest level on August 5, which is about 30% below the current level. This price is slightly above the oversold point of the Murrey Math Lines at $0.000008940.

Shiba Inu’s crash below the neckline at $0.00001090 will point to more downside, potentially to the next support at $0.000005875, its lowest swing in May 2023.

The Shiba Inu coin price has crashed as the crypto industry remains under pressure following Donald Trump's tariff proposal. The US will now implement tariffs on Mexico and Canada, a move that will lead to higher inflation and slow economic growth, also known as stagflation.

Stagflation is the hardest place for the Federal Reserve to be in because rate cuts to boost economic growth spurs inflation. Rate hikes to slow inflation leads to slow economic growth. The Fed left interest rates unchanged last week and hinted that they will remain higher for a while.

Shiba Inu price is falling because of the ongoing weakness in the crypto industry. Bitcoin has already plunged below $100,000, while the valuation of all coins has fallen by over 10% in the past few weeks.

Further, Shiba Inu price has fallen because of the recent focus on newer meme coins like Fartcoin, ai16z, and Pudgy Penguins. This focus has led many investors to move from older coins like Shiba Inu and Floki.

Shiba Inu has also struggled because of Shibarium's performance. It only has a TVL of just $2.3 million, much lower than other networks like Cardano and Sui. This explains why the amount of BONE fees in the network has fallen.