Shiba Inu on the Edge: Price Could Plunge 50% if Bears Break Key Support

Despite a strong short-term bounce, Shiba Inu (SHIB) remains at risk of a major 50% drop if it fails to hold above critical support levels. The meme coin has rebounded to around $0.0000113, but bearish patterns on the charts are flashing warning signs.

📉 Descending Channel Signals Risk — Bearish Breakdown in Sight? SHIB is currently moving within a descending parallel channel, a structure that points to a continuing bearish trend. Today’s price rally, which saw an 8% gain from a daily low of $0.0000104, may be short-lived unless bulls regain control. 🔻 If Shiba Inu breaks below the lower boundary of the channel, analysts warn of a potential collapse down to $0.0000055. That level also aligns with the 123.6% Fibonacci retracement, making it a crucial area of support.

🧠 Technical Indicators: Bears Still in Charge The technical setup looks concerning: 🔹 The MACD has issued a sell signal after crossing below the signal line

🔹 The Awesome Oscillator (AO) is building longer red bars, confirming bearish momentum 📉 A recent Coingape report also noted that after hitting a 13-month low, SHIB may be heading toward $0.000009, putting many holders in the red.

🌐 Can Ethereum’s Upgrade Save SHIB? Not all hope is lost. Some analysts believe that the upcoming Ethereum network upgrade "Pectra", expected in May, could boost SHIB’s ecosystem by improving performance for Ethereum-based Layer 2 projects. According to popular crypto voice Mikey.shib, the upgrade could:

"Lower gas fees, speed up finality, and make scaling smoother across the SHIB ecosystem. If ETH wins, SHIB wins even harder!"

The upgrade could also increase SHIB’s burn rate, which is currently struggling. Only 4 million SHIB tokens were burned recently, marking a 64% drop in burn activity—a possible reason why SHIB’s recovery remains sluggish.

Summary: SHIB at a Crossroads – Breakout or Breakdown? While the recent bounce has lifted spirits, technical analysis warns of serious downside risk. If SHIB loses its footing, it could fall by up to 50%. But if Ethereum's upgrade delivers on its promise, SHIB could be in for a strong rebound.

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