Shiba Inu price pulls back to range that triggered the 2021 800% rise

• Shiba Inu price action continues to crash.
• The probability of a bounce is increasingly likely.
• Downside risks are becoming less damaging.

Shiba Inu price is currently down over 44% from the weekly open, a percentage loss experienced by nearly every cryptocurrency market. From its all-time high, it remains down nearly 90%. However, further downside pressure is likely to decrease.

Shiba Inu price eyes a return to test $0.000027

Shiba Inu price has fallen back to the top of the range that initiated the spectacular 800% price space between early October 2021 and early November 2021. Volume participation this week has also risen to levels not seen since last Fall.

From an Ichimoku perspective, Shiba Inu price is oddly neutral. On the weekly Ichimoku chart, SHIBA is one of the few major altcoins that has not generated an Ideal Bearish Ichimoku Breakout – SHIBA would need to close below all-time lows to trigger that setup.

A Kumo Twist on the weekly chart occurs between today and next Wednesday (May 18, 2022). Kumo Twists occur when Senkou Span A crosses Senkou Span B (the Ichimoku Cloud changes color from red to green or green to red). If an instrument is trending strongly into the period of a Kumo Twist, then it has a high probability of forming a swing high or low. Therefore, the Kumo Twist warns of a likely swing low appearing for Shiba Inu price.

SHIBA/USDT Weekly Ichimoku Kinko Hyo Chart

If the Kumo Twist does generate a new swing low, then the retracement for Shiba Inu price may be substantial. This means a return to the 50% Fibonacci retracement and weekly Kijun-Sen at $0.000027 is highly likely.

While downside risks exist, they are probably limited in scope and size compared to any upside potential. $0.000006 is the likely extreme low that SHIBA would hit on any bearish continuation move.

 

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