Shiba Inu Faces 100-Day Downtrend, 50% Market Cap Drop

Shiba Inu, a popular meme coin, has been experiencing a prolonged downtrend for over 100 days, causing concern among investors about its potential recovery. The persistent selling pressure has made it challenging for SHIB to regain momentum, leading to questions about when the downtrend might end.

Currently, SHIB is trading at $0.0000127, with a marginal 0.7% increase in the past 24 hours. This downtrend is part of a broader trend where interest in meme coins has waned, as crypto traders shift towards less speculative assets. The price chart shows SHIB forming lower highs and lower lows, with its market capitalization dropping by more than 50% from $16 billion to $7 billion.

For SHIB to break out of this bearish structure, it needs to surpass the resistance at the descending trendline, specifically at $0.0000136. If SHIB can move above this level, it could potentially flip the market structure to bullish. A successful breach of this resistance could lead to a significant 108% rally, propelling SHIB towards the 79% Fibonacci level of $0.0000286. This rally would depend on buyers and whales accumulating the meme coin to push the price higher.

However, if SHIB continues to move within the descending trendline and fails to make a breakout, the downtrend will persist. This scenario would support a bearish prediction, dropping the meme coin to support at $0.0000108.

One factor that could potentially push SHIB out of its 100-day downtrend is the growth of the Shibarium network. The number of blocks on the network is approaching 10 million, which could ignite a massive rally for the meme coin. Despite this growth, the layer 2 network has seen reduced adoption, with the Total Value Locked (TVL) dropping from $6 million to around $1.81 million.

As network activity drops, SHIB may continue to face bearish headwinds, extending the 100-day decline and pushing it to the $0.0000108 support level. However, if the 10 million block milestone helps drive adoption, it could spark a bullish reversal for SHIB.

In summary, the end of the 100-day downtrend for SHIB will likely depend on buyers re-entering the market and SHIB flipping resistance at $0.0000286. The growth of the Shibarium network and increased adoption could also play a crucial role in reversing the bearish trend.