The Shiba Inu (SHIB/USD) price has been in a strong bearish trend in the past few months as demand for meme coins ease. The coin has tumbled by about 65% from its all-time high of $0.000088. It is trading at $0.000030, bringing its total market capitalization to over $16 billion.
Shiba Inu review
Shina Inu is a relatively new cryptocurrency that was started in May last year as other cryptocurrencies surged. Shortly after its launch, the coin surged, becoming one of the top ten cryptocurrencies.
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This jump was mostly because of the performance of Dogecoin, which was surging at the time. Analysts predicted that it could become a good alternative to DOGE. Also, the fear of missing out (FOMO) helped to push it higher.
Shiba Inu’s resurgence was short-lived as the coin tumbled to an all-time low as the crypto sell-off intensified.
Later in 2021, the meme coin rally helped to push the Shiba Inu price sharply higher. This propelled it to become one of the top 20 cryptocurrencies in the world.
Last week, the Shiba Inu price jumped after speculations emerged that Robinood (HOOD) would list the coin in its platform. That would be a major thing considering that Robinhood has millions of traders in the US.
However, like all other cryptocurrencies, there are concerns about monetary policy. Last week, several Federal Reserve officials, including Jerome Powell, warned that the Fed would move quicker to hike interest rates this year.
The statement came a day before the US published its strong inflation data. The numbers revealed that the headline inflation rose to the highest level in four decades in December. Therefore, there are concerns about whether Shiba Inu will keep doing well in a high-interest rate environment.
Shiba Inu price prediction
The daily chart shows that the SHIB price has been in a strong bearish trend in the past few months. The pair coin has dropped by over 65% from its all-time high. It has also dropped below the 25-day and 50-day moving averages.
A closer look at the daily chart shows that the Shiba Inu price has formed a falling wedge pattern that is shown in black. In price action analysis, this pattern is usually a bullish sign. Therefore, with it nearing its tip, there is a likelihood that the price will stage a major comeback soon.
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