• Shiba Inu price was set to close with a weekly loss after bulls were unfit to break above the 55-day SMA.
  • Expect a break below the green ascending trend line to see downward pressure building further.
  • Support will only come in at $0.00001704, which is the low of January and for the whole of 2022.

Shiba Inu (SHIB) is under the scrutiny of a trifecta of bearish elements that outweigh any bullish arguments at the moment. Even without mentioning the geopolitical headaches and the worries about stagflation, technically, SHIB price triggers several bearish signals towards the markets. With the current situation, it almost looks impossible for bulls to take a stand and try and squeeze out gains unless the situation finally evolves. But until then, Shiba Inu can only go one way, down.

Shiba Inu price confirms bulls have too few tailwinds in their corner

Shiba Inu's price is facing not just headwinds but rather a hurricane of several headwinds that bulls at the moment can not match with any arguments to make new highs. The red descending trend line is the best proof of that, with price action staying in check below there. Secondly, the death cross is opening up even more with the 55-day Simple Moving Average (SMA) trading further below the 200-day SMA, and with this starting to act as the third argument as a price cap on the price action, as was proven on Wednesday where the rally got cut short even before hitting that 55-day SMA. 

SHIB price action looks to be going into next week around the low end on the green supporting trend line. Once a clear broke below there, expect bulls to flee the scene as a new area is open for trading to the downside, and a swing trade towards the low of January makes the most sense. That would mean a drop below $0.00002000, and even though the $0.00001893 level, which is the monthly S1 support, towards $0.00001704 and possibly printing a brief new yearly low before bulls will want to try and repurchase the dip later next week.

SHIB/USD weekly chart

SHIB/USD weekly chart

With cryptocurrencies trading over the weekend, any signals of successful peace talks or Russian forces pulling back out of Ukraine would see a massive relief rally being sparked. As all other assets only trade on Monday, Shiba Inu's price could be in for a solid 58% rally as investors will want to be part of the market before official trading begins. Expect to see sharp rises in price action above the monthly pivot at $0.00002715 and continue throughout next week towards $0.00003697 by next weekend.


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

XRP struggles near $0.7440, could still sustain rally after Robinhood listing

XRP struggles near $0.7440, could still sustain rally after Robinhood listing

Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.

More Ripple News
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone

Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone

Since Donald Trump’s victory on November 5, Dogecoin has emerged as the best performing asset among the top 10 ranked cryptocurrencies. On November 12, DOGE reached a new milestone price propelled by Trump’s statement confirming Elon Musk’s involvement in the incoming administration. 

More Dogecoin News
Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732

Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732

Ethereum is trading near $3,220, down 2.5% on Wednesday after its supply began trending downward. The declining supply could fuel bullish pressure for the top altcoin, especially as institutional demand for ETH ETFs is also rising.

More Ethereum News
PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing

PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing

PEPE rallied over 50% on Wednesday and hit a new all-time high after crypto exchanges Robinhood and Coinbase announced they would list the meme coin on their respective trading platforms.

More Pepe News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

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