• Shiba Inu price is set to drop at least 10% intraday purely on bearish flow as dollar trades sideways.
  • SHIB price consolidates and looks bearish as more headwinds and dark clouds form over cryptocurrencies.
  • Expect to see SHIB price slip below $0.00001 again and possibly dip towards $0.00000655.

Shiba Inu (SHIB) price is stalling this morning on its recovery path from the slaughter it underwent last week. Over the weekend, investors got time to reassess the situation, but already then, some clouds were forming with several questions raised concerning the viability of cryptocurrencies without the regulation and backing of a central control mechanism. To make matters worse, investors got another motivational push to exit their positions in cryptocurrencies after data from China spelled out an even worse guide toward global growth than expected, which is linked with the rise and fall of cryptocurrencies and could result in a 50% correction for SHIB price.

SHIB price gets setback linked to Bitcoin price dropping below $30,000

Shiba Inu price was trying to make its way out of the penalty box, but after just two calm trading days over the weekend, SHIB has been benched again. More investors have pulled out after harmful data out of China, showed that current lockdowns are biting into the economy and will filter into negative global growth to come. This, mixed with all other tail risks that are hanging on the price action, suggests cryptocurrencies are not in good shape to rally and see inflows.

SHIB price failed to keep above $0.00001209, a line in the sand where normally a rally should have been sparked up to $0.00001708. But instead, price is set to slip below and break lower towards $0.00000965, which would be a big psychological blow for traders. Once that level gets broken to the downside, expect to see a massive sell-off, where SHIB price will quickly cover ground down towards $0.00000655.

SHIB/USD daily chart

SHIB/USD daily chart

There is a slim chance that the monthly S2 support level at $0.00001122 could trigger a bullish turnaround, together with the Relative Strength Index (RSI), which is yet again set to break into the oversold area. That could limit bears from adding to their positions, possibly even triggering them to take some profit, since a possible test below $0.00001 failed as the dollar this morning backed off a bit and opened room for SHIB price to fight back against bearish pressures. That could come with a daily close above $0.00001209 and set the scene for a rally higher towards $0.00001708 by the end of this trading week if dollar weakness persists.

 


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

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

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