Shiba Inu price action proves technical analysis is crucial, but it shows a sad ending
|- Shiba Inu price action jumped 20% in two trading days last week as whales pumped up the price.
- SHIB price, however, is now seen turning to the downside and sits at a crucial technical point.
- Expect to see a 20% move this week if this key level breaks.
Shiba Inu (SHIB) price action finished off a stunning trading period last week, where it printed 20% of gains in just two trading days and shot through a very important technical moving average. Meanwhile, price action has been cooling down, and as the dust settles it becomes clear that the technical forces are again the main drivers. In fact, it appears that the whales who pumped up the price action had dumped it again as quickly as they got in before retail traders started to chase the moves.
SHIB price pump, dump and fall
Last week, Shiba Inu price action was in a perfect pump-and-dump scenario where whales triggered an initial move that counted for a 10% price increase. As the word spread on social media, several smaller traders tried chasing the move and entered at sometimes very irrational levels with no real logical trade management for stop losses or profit-taking levels. What erupted was a second wave that brought another 10%, which offered the whales a window of opportunity to offload with massive gains, leaving the retail traders out to dry with mounting losses.
SHIB price action has already been erasing most of the second wave from last week and is currently pressing on the key level at $0.00001209, where the monthly pivot for November is still held on Tuesday. Once through there, the 55-day Simple Moving Average is the only element preventing price action from fully collapsing toward $0.00000965, below $0.00001000. Whether the monthly pivot of October will do the trick as it did in its last trading days is doubtful and remains to be seen.
SHIB/USD daily chart
The only olive branch that could save this jump from fully paring back comes from the Fed this evening. There have been some rumours these past few weeks that the Fed could start to slow down its rate hiking cycle and start hiking with smaller increments. This would be perceived by the markets as dovish and support equities in their rally, as well as help stronger cryptocurrencies against a weaker dollar. That would mean that SHIB price action could shoot back up toward $0.00001500 before being capped by the monthly R1 resistance level.
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