Shiba Inu price to complete the bearish pattern with a 70% drop

Shiba Inu (SHIB) price action is on the cusp of breaking out of a bearish triangle that has dictated price action over the past two months. With a break to the downside, room  opens up for an almost 70% drop towards the lowest levels in its existence as investors flee cryptocurrencies overall, following  more and more reports that global markets are going into recession. With this dire projection in mind, expect to see further bleeding of SHIB price action as it falls back to $0.00000655.

Shiba Inu price action bleeds as investors flee from recession fears

Shiba Inu price action is seeing a massive squeeze building from bears trying to break out of the bearish triangle as more and more headwinds combine each day. The situation in Ukraine and new lockdowns in China are spelling supply chain issues again, and banks are starting to use the word recession more often in their reports about the future. This weighs on investor sentiment as cryptocurrencies are put on the backfoot and witness a daily outflow of cash from investors pulling the plug on their positions.

SHIB price looks to break below $0.00002140 any moment now, with considerable momentum behind it from the death cross with the 55-day Simple Moving Average (SMA) below the 200-day SMA. Next to that, the Relative Strength Index is nowhere near being oversold, opening the door for short sellers to pick up some more gains in the downtrend. Expect to see a sharp drop in the coming days towards $0.00001000, breaking the monthly S1 and S2 support levels along the way, only to find a floor near $0.00000607, which is near the lowest level in SHIB’s .

SHIB/USD daily chart

Although red flags are popping up all over financial markets, investors could still be working on a turnaround in an attempt to look beyond the current crisis at hand. If central banks can steer economies out of this dire situation, expect investors to start buying into cryptocurrencies to take advantage of lucrative discounts. This could spill into a turnaround and see price action first pop back above $0.00002500, breaking the bearish 55-day SMA and hitting $0.00002787, above the 28.6% Fibonacci level.