• Shiba Inu price is trading sideways between $0.00002925 and $0.00003785.
  • SHIB RSI is almost flat, showing a balanced equilibrium between buyers and sellers.
  • Expect volatility to pick up once a catalyst lights a bullish breakout.

Shiba INU (SHIB) price is trading stuck between a 16% variation bandwidth as price looks for direction with neither buyers nor sellers putting forward any big moves. As equity markets shift further towards gains, expect this to spill over into cryptocurrencies and act as a catalyst for a bullish breakout, taking price above a top line that is capping price action for the moment. Following such a breakout, expect bulls to target a return to the 61.8% Fibonacci level at $0.00004490.

Shiba Inu awaits equities tailwind, sparking 35% rally

Shiba Inu price has been trading sideways since last week as investors find themselves puzzled as to the path forward. Much event risk lies on the horizon with a lot of rate decisions from the most prominent central banks this week and some pending uncertainties over Covid variants. On Monday, European equities already started the week in the green, and in the early trading hours, the US indices are also quoting in the green. This sentiment could be the catalyst cryptocurrency investors are awaiting to spark a late Christmas rally.

SHIB price could see bulls attempting to surmount the red descending top line from December 1st, which price recently respected, leading to several rejections to the downside. A breakthrough would be the cue for sidelined investors to join the rally.. If this is the case – and as buying volume sees a significant uptick – expect the subsequent rally to hit the 61.8% Fibonacci level at $0.00004490 quickly.

SHIB/USD daily chart

SHIB/USD daily chart

Once around that level, it will become increasingly more difficult for investors to drive SHIB price higher as liquidity starts to die down year-end. If most central banks keep their loose monetary policy going, expect a boost of confidence that would spark another leg higher towards the 50% Fibonacci level at $0.00005690. If central banks come out more hawkish, on the other hand, expect a quick deflation of the price as investors cash in on their positions, triggering a sell-off towards the monthly S2 support level at $0.00001260, holding a 60% potential loss.






 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP