Shiba Inu could hit $0.00004490, but the Christmas grinch is just around the corner
|- Shiba Inu price is looking a bit heavy this morning during the European session.
- SHIB price looks like it will be rejected at $0.00004000 and could fade further into the US session.
- Expect liquidity to dry up with investors pulling funds out of cryptocurrencies, resulting in a further correction towards $0.00003000.
Shiba Inu (SHIB) price is getting rejected at $0.00004000 as investors start to pull their funds in the wake of Christmas evening. Expect SHIB price to look heavy throughout the day as thin liquidity dictates movements. A drop towards $0.00003000 would be logical with the monthly pivot at that level and the Fibonacci level just below acting as support.
Shiba Inu price could drop 20% on thin liquidity today
Shiba Inu price has had a good Christmas rally, but now it looks to be taking a turn to the downside as $0.00004000 is forming a point of rejection with investors cashing in and pulling their funds, partially to diminish risk during the holiday season. Moves are likely to be enlarged as liquidity will dry up even more going into the US session. A complete reversal of the Christmas rally could be in the cards, which would mean a 20% drop possibly today.
SHIB price will then look for support, which is likely to be provided around $0.00003000 at the monthly pivot, which has proven its importance over the past few days. Even if the pivot breaks, just a few ticks below is the 78.6% Fibonacci level, which is a tough nut to crack for bears. Expect SHIB price to search for a moderate level to quote before investors start to celebrate.
SHIB/USD daily chart
If bulls can find enough volume to go for a last push to the upside, expect a test again and possibly break at $0.00004000, which could see a short-term accelerated move towards $0.00004490 – a likely stopping place for the rally. At that level, not only a technical resistance level is present, but also the 61.8% Fibonacci level and the 55-day Simple Moving average. So expect a firm rejection that could trigger a full retreat, paring back all the gains made so far.
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