- 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
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
Editors’ Picks
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.
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.
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.
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.
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.
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.