Shiba Inu’s market volatility has been linked to global geopolitics, experiencing a 16% decline amidst escalating US-China tensions. Despite positive developments within its ecosystem, the meme coin plummeted to $0.00001038, its lowest level since February 2023.
The cryptocurrency market experienced significant turbulence as escalating trade tensions between the United States and China sent shockwaves through global financial markets. Shiba Inu (SHIB) was not spared from the selloff, plummeting to $0.00001038 – its lowest level since February 2023 – despite positive developments within its ecosystem.
Global Economic Tensions Impact SHIB
President Trump‘s tariff plans triggered a market-wide crypto selloff, pushing SHIB to a 13-month low. China responded with 34% retaliatory tariffs, intensifying global trade tensions and causing investors to unwind positions in risk assets, including cryptocurrencies. The meme coin‘s dramatic decline came despite Shibarium’s achievement of processing over 1 billion transactions.
With a population of over 1.4 billion, China has become the world's most populous country.
The country's economic growth is driven by its vast manufacturing sector, which accounts for over 30% of global production.
China's Belt and Road Initiative (BRI) aims to connect Asia, Europe, and Africa through infrastructure development, making it a significant player in global trade.
In 2020, China surpassed the US as the world's largest trading nation, with a total trade value of $4.6 trillion.
Technical Analysis Highlights
SHIB experienced a 16.2% decline from $0.00001239 to $0.00001038 on April 7th. A clear double bottom pattern formed around the $0.00001050 support level, followed by the establishment of an uptrend channel with resistance at $0.00001108.
Recent price action shows bullish momentum with increasing volume as SHIB reclaimed the $0.00001097 level with consecutive higher lows. After reaching a low of $0.000010939, the asset established a higher low at $0.000010949, followed by a significant upward movement to $0.000010985, representing a 4.2% gain from the session low.
An ascending channel formed with support at $0.000010965, while increased trading volume during upward movements (particularly the 29.8M volume spike at 09:08) confirms strengthening bullish momentum. Recent consolidation between $0.000010970 and $0.000010973 suggests accumulation before potential continuation toward the $0.000010990 resistance level.
Technical Outlook
With SHIB’s open interest declining by $454 million since January and funding rates turning negative, short-term bearish sentiment remains strong despite the potential for continuation toward the $0.00001150 resistance zone if current support holds. However, recent signs of recovery and bullish momentum suggest that this decline may be short-lived.
Disclaimer: This article was generated with AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
