Shiba Inu (SHIB) enthusiasts were hopeful for a sustained parabolic expansion after a strong start last week. The popular meme coin surged 4.48% on Monday and climbed to a high of $0.00001567 by midweek, marking its highest level since late February. However, bullish momentum faded quickly, leading to a sharp decline in tandem with the broader crypto market.
As of today, SHIB has retraced by 21% from its weekly high, with analysts suggesting that further corrections may be imminent.
Analyst Breaks Down SHIB’s Sudden Drop
Prominent crypto analyst Nebraskangooner attributed SHIB’s recent downturn to a combination of macroeconomic factors and technical resistance. In an April 1 post on X, he noted that Donald Trump’s proposed tariff hikes had contributed to bearish sentiment across the broader market.
$SHIB (per request)
— Nebraskangooner (@Nebraskangooner) April 1, 2025
Pretty nasty fake break out.. many other alts have rejected resistance and headed back to the lows from here. pic.twitter.com/cJmyHHahgh
Technically, SHIB faced stiff resistance at the $0.00001567 level, which previously acted as a strong support zone in early February. After breaking below this threshold on February 24, the level flipped into a key resistance point. SHIB’s recent rally failed to break through, triggering a swift rejection and subsequent decline.
Additionally, Nebraskangooner highlighted a fake breakout from a macro resistance level on Monday when SHIB briefly spiked 3% to an intraday high of $0.00001315. Following the rejection, the meme coin slid further, losing 6% from that mark.
According to the analyst, similar trends are playing out across multiple altcoins, suggesting that a broader market correction could continue. While he did not specify an exact downside target, an accompanying chart hinted at a potential retest of the March 11 low at $0.00001082, representing another 13% decline from current levels.
Bullish Rebound on the Horizon?
Despite the prevailing bearish sentiment, Shiba Inu enthusiast and PawZone founder JD Hatefi remains optimistic. In a recent post, he argued that the current downtrend is temporary and largely driven by macroeconomic uncertainty.
We are only getting started. My target for $BTC is ~$150k after Liberation Day.$SHIB will go parabolic. pic.twitter.com/1MJYuiUYb7
— JD’s Updates (@jds_updates) April 1, 2025
Hatefi predicted that Bitcoin could surge to $150,000, which he believes would catalyze a market-wide recovery. He further suggested that SHIB could experience a parabolic surge once concerns over Trump’s tariffs subside.
Also Read: Shiba Inu (SHIB) Shows Signs of Accumulation: Is a Bullish Breakout Coming?
At press time, Shiba Inu trades at $0.00001024, down 2.36% in the past 24 hours, with investors closely watching for the next decisive move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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