Shiba Inu At Risk of 70% Decline? Price Breaks Below Parallel Channel

Overview

Shiba Inu has recently broken below the support line of a Parallel Channel, which has raised concerns among analysts about a potential significant decline. This technical development could have substantial implications for the cryptocurrency, as it may indicate a continuation of bearish momentum.

Shiba Inu’s Technical Breakdown

In a recent analysis, an analyst highlighted that Shiba Inu’s price has fallen below the support line of a Parallel Channel. This type of channel is characterized by two parallel trendlines that define the price range within which an asset trades. The upper trendline typically acts as resistance, while the lower trendline serves as support. When the price breaks out of either boundary, it often leads to a sustained price movement in the direction of the breakout.

The specific Parallel Channel in question has been in effect for Shiba Inu for several years. According to the analysis, the price of Shiba Inu retested the upper level of the channel twice in 2024 but faced rejection each time. In 2025, the cryptocurrency consolidated around the midline of the channel. However, a decline during the last quarter of that year pushed the price down towards the support line.

As bearish price action persisted into 2026, Shiba Inu retested the support level yet again but failed to rebound, leading to a decisive break below the channel. This development is noteworthy because it indicates that the asset may be entering a new phase of price movement, potentially signaling further declines.

The analyst has pointed out that breakouts from Parallel Channels can result in price movements that are equivalent to the height of the channel itself. In this case, the target level identified is $0.00000138, which is significantly lower than the current trading price of Shiba Inu.

From author

The situation surrounding Shiba Inu illustrates the complexities of technical analysis in cryptocurrency trading. As the asset has broken below a key support level, traders and investors will be closely monitoring its price movements for signs of further decline or potential recovery. The implications of this technical analysis extend beyond Shiba Inu itself, as it reflects broader market sentiments and the challenges faced by meme-based cryptocurrencies.

Impact on the crypto market

• The break below the support line of the Parallel Channel may contribute to increased selling pressure on Shiba Inu.
• A sustained decline could lead to a shift in investor sentiment, particularly among those holding meme-based cryptocurrencies.
• The potential target level of $0.00000138 may influence trader strategies as they assess risk and reward in the market.
• The overall bearish trend could have a ripple effect on other cryptocurrencies, especially those with similar trading patterns.
• Continued bearish momentum in Shiba Inu may lead to a reevaluation of the asset’s long-term viability among investors.