shiba inu (SHIB) has entered a correction phase with the larger cryptocurrency market. The latest drop in the market follows crypto-friendly bank Silvergate’s announcement that it needs to review its ledgers.
SHIB broke below the previous support at $0.00001200, forming a new support level at $0.00001100. The token has formed a falling wedge on the 4-hour chart with the possibility of horizontal consolidation. However, SHIB must stay above $0.00001100 to avoid further declines.
Koinfinans.com As we reported, Shiba Inu (SHIB) has tested the $0.00001100 level multiple times since mid-January 2023. This level could be for another test that will determine whether the asset will fall further or move sideways. If SHIB can continue with a sideways consolidation, the asset is likely to trade near the $0.00001155 area. However, if the asset breaks below its current support, there is a risk for SHIB to gain another zero and drop to the $0.00000900 levels.
According to forecasts by PricePredictions, it is possible for SHIB to continue falling. However, it will continue to trade at $0.000011 until the beginning of April.
Will the Shiba Inu Return?
A falling wedge is a sign that the asset may continue to fall before it goes up. Popular dog-themed cryptocurrency If the currency can close above $0.00001100, it could experience a recovery. However, this will not be enough. The SHIB will need to maintain a sideways movement and eventually come out of its wedge. However, there has been little development to encourage such a comeback.
SHIB currently lacks bullish behavior involving on-chain activities. The only advancement pushing SHIB this year is the layer-2 network shibariumThe expectation for the release of . However, there is no fixed date for release.
Also, the FED’s next FOMC meeting is scheduled for the end of this month, on the 21st. A key Fed official on Thursday warned that the Federal Reserve will be forced to raise its main interest rate even higher than expected if the recent pattern of unusually strong employment growth, consumer spending and inflation continues. Regardless, markets may experience more volatility for the same reason.
At the time of writing, the Shiba Inu (SHIB) is trading at $0.00001144, up 0.6% in the last hour.