What to do with SHIB price action while hibernating for the crypto winter
|- Shiba Inu price cannot continue its recovery from Tuesday and Wednesday.
- SHIB price performed a perfect bounce off a trend line but this now looks to have come to an end.
- Expect a drop back to the lows and possibly for new lows to form at $0.00000655.
Shiba Inu (SHIB) has proven a bit of an outlier these past few days when compared to most cryptocurrencies which have kept tanking. Bulls in SHIB were using the bounce off the red descending triangle as a reason to rally. But this rally has been beheaded by the Fed rate decision which has forced SHIB investors to face reality. SHIB is already printing below 6% losses and could see more on the back of persistent dollar strength against a backdrop of inflation woes and monetary tightening.
Wake me up when spring kicks in
Shiba Inu price was set to pop higher in early morning trading during the ASIA PAC session, but Asian traders had to quickly let go of that idea after the Fed made its most hawkish move yet. Although highly anticipated, markets still had to digest the uncommonly harsh rhetoric from Powell which did not paint any bright pictures for the summer months, as the Fed has still not managed to get inflation under control. Further pressure is likely to mount on cryptocurrencies as this new global market sentiment looks to be going nowhere anytime soon.
SHIB price will thus make new lows soon, probably by the end of this week. Expect a break below the low of Monday, which will open the room for a drop back towards $0.00000655, together with the monthly S1 support and the baseline of the Fibonacci retracement. Although it looks small, it is still a whopping 35% drop.
SHIB/USD daily chart
A return to the upside would, of course, be crucial for a recovery above $0.00001000. Pivotal for that is the reclaiming of $0.00000965 with a firm close above there. Once that happens, the road is clear for a rally up towards $0.00001209 and even $0.00001708 on a breakthrough headline on Russia or tariffs against China from the US being lifted.
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