Will the Price of Shiba Inu Drop to Zero in the Trade War?

As geopolitical tensions escalate, financial markets worldwide are beginning to feel the tremors — and cryptocurrencies are no exception. The U.S. has announced a massive 104% tax on imports from China, raising fears of a trade war. While stocks brace for volatility, meme coins like Shiba Inu (SHIB) are particularly vulnerable due to their speculative nature. But will this new wave of economic conflict push SHIB into a death spiral — or is the market overreacting? Could the trade war trigger a sell-off of SHIB prices? The trade war is not just about tariffs — it is also about fear, instability, and changes in global liquidity. Risky assets like meme coins tend to be the most affected in such conditions, and SHIB has shown signs of weakness on the chart. As of now, the price of SHIB is trading at $0.00001073, down over 3% on the day and struggling to find support amid the overall unstable market. Traditionally, SHIB has thrived in a speculative risk environment, especially when liquidity is abundant. However, the strong tariffs imposed by the United States on China signal a shift in macroeconomic policy — a policy that could restrict spending, increase inflation, and cause retail investors, who make up the core of the SHIB community, to panic. This adds further downward pressure on SHIB unless sentiment reverses quickly. Shiba Inu price prediction: What does the daily chart reveal about the trend of SHIB?

Looking at the daily chart, SHIB has been on a continuous downward trend since the beginning of February. The price is currently firmly below all major moving averages — SMA 20, 50, 100, and 200 days — with the 200-day SMA at $0.00001906, much higher than the current level. The inability to reclaim even the 20-day SMA at $0.00001259 is a clear indicator of bearish control. The Heikin Ashi candle remains red with a long wick pointing down, reflecting continuous selling pressure and unsuccessful recovery attempts. Even more concerning is the Accumulation/Distribution line (ADL), which has sharply dropped to 1,558.70, confirming that volume is exiting the market. This loss of demand in the context of geopolitical concerns could be a significant warning sign that the next phase of SHIB may not be upward. Unless SHIB can reclaim the 20-day SMA with strong volume, the path of least resistance remains downward. A break below the psychological level of $0.00001000 could open the door to test support at $0.00000850 — a level not seen since the beginning of 2023. Is there a short-term recovery forming on the hourly chart?

Zooming in on its hourly chart, SHIB seems to be trying to recover slightly from recent lows. The price is currently trading around $0.00001098, slightly higher than the 20-hour and 50-hour SMAs. However, there is still significant pressure from the 100-hourly and 200-hour SMAs, which are at $0.00001149 and $0.00001195, respectively. There is a slight increase in the short-term trend, supported by the green Heikin Ashi candle and the slight flattening of the downward slope. However, the ADL on the hourly chart remains at 1,338.23, indicating that although the price is recovering, money is not flowing back into SHIB with significant volume. This could indicate a classic dead cat bounce — a short-term recovery in a larger downtrend — unless there is a catalyst to drive sustainable upward momentum. With uncertainty around trade policies, institutional investors may be sitting on the sidelines, waiting for clarity. Will the price of SHIB be able to survive the macroeconomic downturn? While the price of SHIB has proven resilient in the past, the macro context has changed. With the trade war returning and the financial markets preparing for tightening conditions, speculative assets like SHIB may face prolonged selling pressure. Unless Bitcoin and the broader cryptocurrency market surge due to safe-haven stories, meme coins are likely to continue underperforming. That said, the price of Shiba Inu still commands a large community and meme-based price surges can suddenly appear. If retail investors globally react to the trade war by abandoning traditional stocks to switch to cryptocurrencies — a surprising scenario — the price of Shiba Inu could unexpectedly recover. However, from a purely technical and macroeconomic perspective, the odds are currently leaning towards a continued bearish trend. Predictions for Shiba Inu dog price: What is the outlook for the near future of SHIB? The daily chart clearly shows a bearish trend, while the hourly chart only indicates a weak recovery and volume is dwindling across both time frames. Combine that with escalating trade tensions, and it’s a perfect storm for a deeper correction. The price of SHIB needs to reclaim the range of $0.00001150–$0.00001200 with high volume to invalidate the bearish setup. Otherwise, the meme coin may be on a slow path towards $0.00000850 or lower in the coming weeks. Until then, both traders and holders should prepare for volatility, as global politics may determine SHIB's next big move more than any memes or tweets.