Geopolitical Fears Spark 16% Shiba Inu Slump, but Market May Stabilize Soon

Shiba Inu (SHIB) is showing early signs of recovery after a steep 16% drop triggered by mounting geopolitical tensions. As President Trump’s aggressive tariff stance reignited fears of a global trade war, crypto markets wobbled — and SHIB wasn’t spared, briefly dipping to $0.00001038.

But even in the face of macro headwinds, Shiba Inu’s ecosystem continues to expand. Shibarium, the project’s Ethereum layer-2 solution, just crossed a staggering 1 billion transactions, processing over 10 million blocks and maintaining an average of 4.4 million daily transactions — cementing its role as a critical piece of SHIB’s long-term vision.

Traders and analysts are now watching closely. A classic double-bottom pattern has formed near $0.00001050, hinting that the worst of the sell-off may be behind. SHIB has bounced to reclaim $0.00001097, backed by increasing volume and a steady pattern of higher lows.

The market remains cautious. Derivatives data shows open interest falling and funding rates slipping into negative territory — suggesting bears are still lurking. But for long-term holders, Shiba Inu’s resilience and Shibarium’s continued growth offer reasons to stay optimistic.

Chart Notes:

• SHIB’s plunge from $0.00001239 marked a short-term bottom.
• Strong bounce and higher lows indicate possible trend reversal.
• Resistance sits near $0.00001108 with upside potential toward $0.00001150 if momentum holds.

While the broader macro landscape remains shaky, Shiba Inu appears to be weathering the storm better than expected — and building during the chaos.

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