- Shiba Inu price drops another 6% intraday as US dollar strength keeps pushing on.
- SHIB price downside is limited as a significant support level kicks in.
- With the RSI in oversold, expect to see a sharp upswing this week toward $0.00002200.
Shiba Inu (SHIB) price is set to break its five-day losing streak as the US dollar is set to touch bottom and the Relative Strength Index (RSI) points to the end of the downturn. Shiba Inu price could rebound as the dollar will weaken throughout the week and the RSI picking up steam are two forceful elements that could set up a 30% upswing. That would bring price action back to $0.00002200, near the green ascending trendline, possibly rebooting the uptrend for 2022.
SHIB price set to perform swing trade, upholding 30% gains
Shiba Inu price has dropped 22% in the past few trading days as the US dollar strength kept persisting, with markets on edge over the next steps from Russia on Ukraine and now possibly Moldova coming into play. With this additional widening geopolitical risk, investors keep searching for safe havens and are even more convinced about their repositioning as Shanghai enters the fifth week of lockdowns. With more and more cuts in economic growth globally, 2022 is set to become a year of 0% growth, which will leave its marks in risk assets, with cryptocurrencies and stocks upfront.
SHIB price has thus undergone that reshuffle and now looks set for some upside moves, with the RSI trading in the oversold area. Bears will potentially try to squeeze out the last gains towards $0.00001577, which is the monthly S1 support level, but $0.00001708 should be the line in the sand where SHIB price should bounce off. Expect to see an upswing towards $0.00002200, testing the green ascending trend line used as a guide in the uptrend from February and March earlier this year.
SHIB/USD daily chart
As the losses start to mount and get bigger intraday, the risk is building for a falling knife event where investors would completely turn their back on cryptocurrencies. That could see an accelerated move towards $0.00001209, which would bring SHIB price to the low of October 2021. An additional risk is that bears set their target below $0.00001000, breaking a crucial big figure in SHIB price, which would amount to almost 43% of losses.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.