Shiba Inu (SHIB) has entered a correction phase, along with the larger cryptocurrency market. At press time, the popular dog-themed project had fallen 5% on the daily charts and 13.7% on the weekly charts. The latest fall in the market follows crypto-friendly bank Silvergate announcing that it needs to review its books.
SHIB fell below its previous support level of $0.00001200, forming a new one at the $0.00001100 level. The token has formed a falling wedge on the 4-hour chart, with a possibility of sideways consolidation. However, SHIB would need to remain above $0.00001100 in order to not fall further.
Shiba Inu (SHIB) has tested the $0.00001100 level multiple times since mid-January 2023. This level could be in for another test, which would determine if the asset falls further, or moves sideways. If SHIB is able to follow through with a sideways consolidation, the asset may trade somewhere near the area of $0.00001155. However, if the asset falls below its current support, there is a risk that SHIB might gain another zero and fall to $0.00000900 levels.
According to the forecast by PricePredictions, SHIB is expected to continue falling, but still trading at the $0.000011 level till early April.
Will Shiba Inu bounce back?
A falling wedge is a sign that the asset may continue to fall before breaking out higher. The popular canine-themed cryptocurrency can make a rebound if it can close above $0.00001100. But that would not be enough. SHIB would need to maintain a sideways movement, and eventually break out of its wedge. However, there has been little development to stimulate such a comeback.
SHIB currently lacks bullish behavior, which includes on-chain activities. The only development pushing SHIB throughout this year is anticipation regarding the launch of its layer-2 network, Shibarium. However, there is no fixed date for the release.
Furthermore, the FED’s next FOMC meeting is scheduled to take place later this month, on the 21st. A key Fed official warned on Thursday that if a recent pattern of unusually robust job growth, consumer spending, and inflation continues, the Federal Reserve will have to increase its main interest rate even higher than anticipated. Regardless, the markets might experience added volatility for the same reason.
At press time, Shiba Inu (SHIB) was trading at $0.00001144, up 0.6% in the last hour.