SHIB’s 16% Decline Blamed on Geopolitical Stress, Though Rebound May Be Near

Shiba Inu Stabilizes After 16% Drop as Shibarium Hits Major Milestone

Despite facing heavy selling pressure triggered by renewed U.S.-China trade tensions, Shiba Inu (SHIB) is showing signs of resilience as technical indicators flash early recovery signals and its ecosystem continues to expand.

SHIB plunged to $0.00001038 — its lowest price point since early 2023 — following President Trump’s tariff announcement that rattled global risk assets. However, the sharp drop coincided with a significant development in the Shiba Inu ecosystem: Shibarium, the project’s layer-2 scaling network, surpassed 1 billion total transactions and now averages 4.4 million transactions per day, according to network data.

Price Action and Technical Rebound

After the 16.2% correction from $0.00001239, SHIB found support at $0.00001050 and formed a potential double-bottom pattern, a bullish reversal signal. Since then, the token has clawed back some gains, reclaiming the $0.00001097 level with growing trading volume — a potential sign of returning investor interest.

A strong volume spike of nearly 30 million at 09:08 on April 7 further supports the case for an upward continuation. Analysts at CoinDesk Research point to a developing ascending channel, with key resistance sitting at $0.00001108 and a potential breakout target of $0.00001150 if momentum persists.

Broader Market Context

SHIB’s recovery comes amid reduced open interest — down $454 million since January — and negative funding rates, both pointing to lingering short-term bearish sentiment. Still, the asset’s ability to recover higher lows and consolidate above key support suggests a shift in trader positioning.

Highlights:

• SHIB dipped to $0.00001038 but rebounded 4.2% intraday.
• Price structure shows a possible double bottom at $0.00001050.
• Shibarium achieves over 1 billion transactions and processes more than 10.3 million blocks.
• Volume and structure indicate potential continuation toward $0.000010990 and beyond.

With technical indicators leaning cautiously bullish and its network fundamentals strengthening, SHIB may be poised for a near-term bounce — assuming market conditions don’t worsen further.