Shiba Inu may see further downsides as an analyst identifies a fake price breakout following a recent rejection from a crucial resistance level.

After a strong start last week, enthusiasts were looking to relive the Shiba Inu parabolic expansion dream. The meme coin rallied 4.48% on Monday, and before Wednesday, it had reached the late February high of $0.00001567.

However, the asset quickly lost momentum around the price mark, crashing alongside the broader market. Shiba Inu has retraced 21% from the high, with a prominent market watcher suggesting further downsides.

Analyst Explains Recent Downside

In an X commentary on April 1, analyst Nebraskangooner identified the catalyst for this sudden crash. Aside from the broader macro bearishness of Donald Trump’s proposed tariff hikes, he highlighted that Shiba Inu faced intense opposition from a resistance level a week ago.

The $0.00001567 price zone acted as a buffer against lower prices in early February, but Shiba Inu desecrated the stronghold on February 24, turning the zone into a resistance level. Unfortunately, the meme coin’s upside momentum could not ensure safe passage through the supply zone, with adverse broader market conditions contributing to the weakness.

Meanwhile, Nebraskangooner also identified a fake breakout from a macro resistance yesterday after SHIB jumped nearly 3% to an intraday high of $0.00001315. Following the rejection, the prominent memecoin has forayed downwards, retracing 6% from the price mark.

Interestingly, the market watcher identified a similar trend among other altcoins, predicting that further corrections are on the horizon. Although he did not explicitly mention a specific target for the downside, an accompanying chart suggests a retest of the March 11 low of $0.00001082, nearly 13% away from the current market price.

Bearish Momentum at Its Peak?

Meanwhile, Shiba Inu enthusiast and Pawzone founder JD Hatefi has insisted that the downsides of the doggy-themed, lighthearted meme coin will soon be over. In a tweet, he noted that the crypto market will soon be emancipated from the shackles of Trump’s “Liberation Day” and resume an uptrend.

He predicted a Bitcoin target of $150,000, which he believes will spur a broader market rebound. Specifically, he stated that Shiba Inu will go parabolic when the tariff troubles cease, possibly to unprecedented pries.

In the meantime, SHIB trades at $0.00001024, down 2.36% in the past 24 hours.