Shiba Inu price has made a strong rebound today, April 8, after recording an 8% gain. This uptrend mirrors the recovery across the rest of the crypto market after the recent selloff. Despite these recent gains, bears are still looming as depicted on the SHIB price chart where a bearish pattern has emerged.
Shiba Inu price trades at $0.0000113 at press time after bouncing from a daily low of $0.0000104.
Shiba Inu Price Risks 50% Crash From Bearish Pattern
Despite its recent gains, Shiba Inu price may still be on the verge of recording a significant dip if it makes a bearish breakout from a descending parallel channel. SHIB has been fluctuating within this pattern, indicating that the general trend is bearish. This exposes the meme coin to significant dips.
The descending channel can be seen on the one-day SHIB price chart. This meme coin has breached the midline of the channel, and it is now risking a drop to the lower boundary, which will outline a bearish Shiba Inu price forecast.
Once Shiba Inu confirms a breakout below the lower boundary, it will risk crashing by 50% to $0.0000055. This price level is also the 123.6% Fibonacci retracement level.
The only way that SHIB can defy this bearish thesis is if it rallies past the resistance level of $0.0000157 or the 78.6% Fib level. However, technical indicators show that bears remain fully in control.
SHIB’s MACD indicator flashed a sell signal after it crossed below the signal line earlier this week. Meanwhile, the AO histogram bars are growing in length, which also depicts bearish headwinds.
Meanwhile, a recent Coingape article noted that after Shiba Inu price fell to a 13-month low, bears are now eyeing a dip to $0.000009. Such a decline will push many SHIB holders into losses.
Will the Pectra Upgrade Drive a Shiba Inu Price Rally?
The Ethereum Pectra upgrade may be the key to the next Shiba Inu price rally according to one crypto market analyst. This upgrade is slated to happen in May and might bode well for layer 2 networks created on Ethereum.
Per Mikey.shib on X, when Ethereum increases the blob count through network upgrades, it will give more bandwidth to layer 2 networks. He added,”
“That means lower gas fees, faster finality, and smoother scaling for everything in the SHIB ecosystem. ETH wins? SHIB wins harder.”
Improved network activity will also cause a spike in the SHIB burn rate. At press time, this burn rate had dropped by 64%, with only 4M SHIB tokens being removed from the circulating supply. The dip may impact the meme coin’s ability to recover.
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