The bearish crypto market of 2022 appeared to have ended at the start of 2023. Then, Bitcoin rallied, dragging with it the entire crypto ecosystem.
Shiba Inu, one of the most speculated cryptocurrencies, followed Bitcoin’s lead. But something decoupled lately: while Bitcoin still trades near yearly highs, Shiba Inu gave back all of its 2023 gains, and the price action is evolving in a bearish pattern, a descending triangle, which could trigger even more downside.
The dollar’s weakness triggered the rally in the cryptocurrency market, however, not all projects are able to cope with a stronger dollar. This is what we are seeing now: while Bitcoin is relatively unchanged, the weak cryptocurrencies, such as Shiba Inu, are taking a dive.
The irony of it is that the recent dollar strength came in the context of the Federal Reserve hinting it may pause its tightening cycle as inflation comes down. Imagine what would happen if inflation has another spike higher and the Fed changes the rhetoric and hikes some more.
The technical picture signals more downside, with tremendous pressure building against horizontal support. All in all, Shiba Inu does not look good, and the odds favor more weakness.
