Shiba Inu (SHIB) price dropped by over 10% to $0.00001641 on May 9 amid a broader crypto market decline. This year, SHIB’s returns were 50% below zero, one of the worst performances by a top-ranking cryptocurrency in 2022.
Last week, luxury fashion brand Gucci named Shiba Inu in the list of tokens it would accept for payments in five of its U.S.-based stores. Nonetheless, the bulls have ignored the major adoption news as SHIB price continues to fall under macro and technical pressures.
SHIB/USD daily price chart. Source: TradingView
Shiba Inu triangle breakdown
The prospect of Shiba Inu facing more yearly losses increases as it stays on the path toward its “symmetrical triangle” breakdown target near $0.00001197.
The level, which sits around 30% below today’s price, results from a technical rule that measures symmetrical triangles’ profit targets by adding the maximum distance between the structure’s upper and lower trendline to the breakout/breakdown point.
SHIB/USD weekly price chart featuring ‘symmetrical triangle’ breakout. Source: TradingView
Nevertheless, SHIB’s shorter-timeframe charts reflects an interim bullish bias.
Short-term 20% bounce in play
SHIB has dropped near the red horizontal line near $0.00001667, which has served as an accumulation zone for traders three times since October 2021. For instance, Shiba Inu had rallied by over 100% two weeks after testing the $0.0000167-level as support in January 2022.
The level also coincides with the lower trendline of the descending parallel channel, as shown in the chart below. As a result of this confluence, SHIB eyes a price rebound, with the channel’s upper trendline near $0.00002000 acting as the interim upside target for the May-June period.
SHIB/USD daily price chart featuring descending parallel channel setup. Source: TradingView
Meanwhile, SHIB’s daily relative strength index (RSI) has dipped below 30, an oversold territory that could further catalyze a short-term rebound.
Nonetheless, macroeconomic catalysts – primarily a hawkish Federal Reserve – continue to pose downside risks for the crypto market, including SHIB. So price rallies are likely to sell off at higher levels, thus keeping SHIB on track toward its triangle breakdown target near $0.00001197.
Bright future promised
Shiba Inu’s developer Shytoshi Kusama offered a bright outlook for the project in what appeared to be an effort to pent-up the market demand for SHIB tokens.
Related: Shiba Inu has a new use case – Buying land in SHIB: The Metaverse
The developer noted that Playside, an Australia-based video gaming firm, would feature Shiba Inu-themed nonfungible tokens (NFT) – called Shiboshi – on their upcoming metaverse game of the same name. He also noted that Shiba Inu would release the documentation of their layer-2 blockchain, Shibarium, by “this month or next.”
I updated the Shiboshi chat recently but I’m sure we will be seeing more from Playside soon as we near the final triad of production.
– Shytoshi Kusama™ (@ShytoshiKusama) May 7, 2022
The disclosures came after an Ethereum whale bought 74 billion SHIB (worth $1.23 million at press time).
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