• Shiba Inu price opens the week heavy with a few tail risks overshadowing price action.
  • SHIB price is set to recover by the end of the week and tick a fundamental upside level.
  • Expect to see a 70% gain in the making by the weekend.

Shiba Inu (SHIB) price broke above a key-bearish element but had issues maintaining its gains. With price action a little bit on the back foot after the pop higher on Monday, bulls are looking for a support handle from which to bounce off. Expect to see a further minor correction towards $0.00001000 before a swing trade will skyrocket SHIB price towards $0.00001708 and make 70% by the close on Sunday evening.

SHIB price to go out the week with a bang

Shiba Inu price is on the back foot a little bit this Tuesday after a solid rally on Monday with Europe on a bank holiday. Sentiment changed overnight as some small headline tail risks kicked in and started to worry investors. Certainly, the 50 bp Australian rate hike has frightened investors and bulls into expecting more monetary policy tightening from both the FED and the ECB, which is weighing on the risk-on sentiment currently providing supportive tailwinds. 

SHIB price is thus struggling to climb higher after it broke above the red descending trend line that has been present since mid-September. Bulls are looking for support that could come from the big handle at $0.00001000. A bounce off that level would mean a massive swing trade back to $0.00001700 or 70% gains with the 55-day Simple Moving Average (SMA) and a pivotal level both providing a cap in that area.

SHIB/USD weekly chart

SHIB/USD weekly chart

Those previously mentioned tail risks are not one off events that will quickly fade overnight. The most headaches for traders have come from inflation, stagflation, and monetary tightening as central banks attempt to fight inflation and close the tap on cheap money. With less cheap liquidity to invest, more cherry-picking happens, and Shiba Inu price could see some interest fading. As a result SHIB price could plummet towards $0.00000500, axing the current price action in half as Shiba Inu bleeds and sees investors leave in search of safer assets to invest.

 


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