- Shiba Inu price bounces back after 4% drop on Monday.
- SHIB gets tailwind from the Bank of Japan's surprising intervention on Tuesday.
- Expect to see some possible follow-through should major G7 currency pairs keep selling off against the Japanese Yen.
Shiba Inu (SHIB) price looked like a clear road down towards $0.00000738 as the declines started accelerating on the back of the US Federal Reserve and European Central Bank meetings from last week. Traders thought they were done for the year after that eventful week before the Bank of Japan (BoJ) surprised markets on Tuesday and made several G7 currencies shed over 3% against the Japanese Yen. That coordinated devaluation of the Euro, the US Dollar, the Pound Sterling and other currencies is synthetically pulling up cryptocurrencies, which are gaining value against these weakening currencies.
Shiba Inu recovers, targets 18% rally
Shiba Inu price was set to continue its steep decline from December and did that with another 4% loss on Monday. SHIB price action has turned around on Monday and at the time of writing, Shiba Inu bulls are eating up over 3% of the incurred Monday losses, flirting with the chance of paring them back completely. This would be a significant bullish turn if this week’s price action could be turned over into a green candle in the weekly chart.
SHIB thus needs to break higher, and preferably above $0.00000900. Once that area is secured and bulls can follow up on this rally, the 55-day Simple Moving Average (SMA) is an ideal candidate for some profit-taking, near $0.00000972. That would mean an 18% price increase could be in the cards for this week by Christmas.
SHIB/USD daily chart
The issue for the bulls comes as markets could be in for a negative surprise as almost all tail risks for 2022 will be ongoing into 2023. Central banks have not been able to bring inflation back down substantially, nor has the conflict in Ukraine ended, and the European Union is still struggling with its energy supplies. All these elements will still put bearish pressure and could push Shiba Inu price back towards $0.00000738.
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