Shiba Inu traders are keeping price action tight this week
|- Shiba Inu price consolidates with buyers and sellers getting squeezed toward each other this week.
- SHIB price sees a very confident trading rate with a slight difference between the high and the low for this trading week.
- Expect to see a break to the downside as bulls cannot underpin price action in a joint effort.
Shiba Inu (SHIB) price is seeing bulls making an effort to slow down at least the downtrend in SHIB price action that is on the cusp of closing its eighth straight week of losses by Sunday night. Bulls are due for a lesson in simple economics where the power of unity would be more impactful if one price point were agreed upon to join forces (and cash, for that matter) to trigger a turnaround or at least a knee-jerk reaction. Expect a drop towards $0.00000507 before the bulls jump all at once on the same level and try to turn the tide back to $0.00001000.
SHIB price nears its inflection point of turnaround
Shiba Inu price is not near its point of return yet, as an eighth straight week of losses looks to be in the making. With global markets on edge, these past few weeks and central banks have had the most attention, it is clear that this global theme that impacts us all is not going away anytime soon. The inflation issues, and in a domino effect, the impact on our disposable income, is a big issue for cryptocurrencies as its valuation dropped below 1 trillion USD and is seeing cash being pulled out at a fast rate.
SHIB price is thus running dry and out of cash to burn to fund a rally back towards $0.00002000 or even $0.00003000. But the devil is in the detail, as SHIB price could still drop towards $0.00000507, that could be the line in the sand for bulls to create a turnaround moment. With joint effort and a lot of volumes, bulls could halt the downtrend at that point and create a bounce off that, depending on the momentum and other factors like the dollar strength, could see a rebound towards $0.00001500 or even $0.00001708.
SHIB/USD weekly chart
With that ‘strategy’ where bulls would wait for a drop lower by roughly 40% comes the risk that the bearishness is too much to withstand. Would that be, for example, a perfect storm where a cryptocurrency firm defaults, dollar strengths and global markets are selling off with flights to safe havens, that $0.00000500 level would break like a wooden cottage and be no match for the avalanche that is coming towards the bulls. In that case, a firm correction with price action makes SHIB, a penny stock, almost worthless.
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