Global Economic Tensions Impact SHIB

The cryptocurrency market experienced significant turbulence as escalating trade tensions between the United States and China sent shockwaves through global financial markets. Shiba Inu (SHIB) was not spared from the selloff, plummeting to $0.00001038 — its lowest level since February 2023 — as investors fled risk assets following President Trump’s announcement of new tariff policies.

The meme coin’s dramatic decline came despite positive developments within its ecosystem, including Shibarium’s achievement of processing over 1 billion transactions. The layer-2 scaling solution has now processed more than 10.3 million blocks since its launch, averaging approximately 4.4 million daily transactions, making it one of the fastest-growing networks on Ethereum.

Some technical analysts note that SHIB has formed a potential double-bottom pattern around the $0.00001050 support level. Recent price action shows signs of recovery as the asset reclaims the $0.00001097 level with increasing volume. However, with SHIB’s open interest declining by $454 million since January and funding rates turning negative, short-term bearish sentiment remains strong despite the potential for continuation toward the $0.00001150 resistance zone if current support holds, according to CoinDesk Research technical analysis model.

Technical Analysis Highlights

SHIB experienced a 16.2% decline from $0.00001239 to $0.00001038 on April 7th. During the sell-off, unusually high trading volumes exceeded 3.6 billion.

A clear double bottom pattern formed around the $0.00001050 support level, followed by the establishment of an uptrend channel with resistance at $0.00001108.

Recent price action shows bullish momentum with increasing volume as SHIB reclaimed the $0.00001097 level with consecutive higher lows.

After reaching a low of $0.000010939, the asset established a higher low at $0.000010949, followed by a significant upward movement to $0.000010985, representing a 4.2% gain from the session low.

An ascending channel formed with support at $0.000010965, while increased trading volume during upward movements (particularly the 29.8M volume spike at 09:08) confirms strengthening bullish momentum.

Recent consolidation between $0.000010970 and $0.000010973 suggests accumulation before potential continuation toward the $0.000010990 resistance level.

Disclaimer: This article was generated with AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. This article may include information from external sources, which are listed below when applicable.

External References:

Times Tabloid, «Shiba Inu (SHIB) Coils for a Massive Move: Key Levels to Watch,» published April 5, 2025.

Times Tabloid, «ChatGPT Predicts Shiba Inu (SHIB) Price for April 30, 2025,» published April 6, 2025.

CoinGape, «Shiba Inu Price Faces 50% Crash as Bearish Breakout Looms,» published April 7, 2025.

CryptoPotato, «Shibarium’s Latest Milestone Fails to Stop SHIB’s Nosedive: Details,» published April 7, 2025.

TheCoinrise, «SUI & SHIB Struggle for Momentum While BlockDAG Mobile Mining Sees Surge to 1.2M Users After Keynote 3,» published April 7, 2025.

European Union (EU) member states have approved the European Commission’s proposal to introduce retaliatory tariffs against the U.S.

The bloc’s executive made the proposal as a countermeasure against the U.S.’ imposition of tariffs on imports of steel and aluminium from the EU.

Duties will be collected from April 15 once the implementing act is published, the Commission announced on Wednesday.

«The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,» the Commission said in the announcement.

The Commission added that its preference is to avoid imposing tariffs and that they could be suspended at any time should the U.S. «agree to a fair and balanced negotiated outcome.»

President Donald Trump’s unveiling of steep import tariffs have sent both crypto equity markets tumbling in the last week. BTC has lost around 8% and both the S&p 500 and Nasdaq have fallen by over 10%.

Teucrium Investment Advisors’ 2x Long Daily XRP exchange-traded fund (XXRP), the first leveraged XRP product in the U.S., racked up $5 million in trading volume on its Tuesday debut, becoming one of the company’s «most successful» introductions and posting a top 5% performance for a new ETF.

The ETF is designed to deliver twice the daily returns of XRP through swap agreements. With no suitable US-listed spot XRP ETFs available, the swaps’ reference rates incorporate several European exchange-traded products.

The change in U.S. government and its more pro-crypto stance helped bring the ETF to market. The filing for the ETF took place right after the prior Securities and Exchange Commission (SEC) administration exited, and as soon as the standard 75-day review period passed, Teucrium seized the earliest launch window.

“We filed as soon as we could after the old SEC regime left … we launched today,” CEO Sal Gilbertie said on Tuesday. “I think it’s almost at a couple hundred thousand shares.”

The fund saw about four times the initial activity of Volatility Shares’ 2x Solana ETF (SOLT), propelling it into the top 5%, according to Bloomberg ETF analyst Eric Balchunas.

“It’s been a terrific, very successful launch — our most successful launch day to date for any fund we’ve ever done,” Gilbertie said. “There was overwhelming excitement… I think a lot because we were overlooked.”

The ETF gains XRP exposure through swaps tied to European XRP ETPs but can also use other XRP-linked instruments, like futures, to enhance efficiency and cut costs. Gilbertie emphasized that the product isn’t for long-term investors.

“This is absolutely a short-term trading tool — ideally for one day,” he said. “Because of the reset and the math … if that asset goes up very slowly or sideways or down, you will lose money.”

Teucrium, managing roughly $320 million across 12 ETFs, is already planning an inverse XRP ETF, the Teucrium 2x Short Daily XRP ETF, a prospectus shows. This would let investors profit from XRP price drops, though Gilbertie said the firm will wait to assess demand before proceeding.