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Big Tech saves the day for Shiba Inu as a 10% profitable peak gets underway

  • Shiba Inu price jumped higher in a volatile US trading session on Tuesday.
  • SHIB saw bulls clawing out of the well they fell in since the past weekend.
  • Expect to see SHIB rally further and head toward $0.00001100 for a 10% profit.

Shiba Inu (SHIB) price enjoyed an external tailwind that was very much welcomed, seeing the steep decline SHIB underwent. Since mid-April, SHIB nearly traded only one way to the downside, breaking several support levels along the way. With the tailwind, a bullish pop got sparked and might see some more follow-through in the coming days.

Shiba Inu gets entangled again with Big Tech

Shiba Inu price was long decoupled from the rises and falls of the stock markets as it was trying to break out of its crypto winter. That was until Tuesday evening when earnings from Microsoft and Alphabet, parent of Google, pointed to some strong numbers. What stood out was that Alphabet did not have any sharp declines in its publicity revenues, which is often the first element that companies cut when fearing a recession.

SHIB bulls welcomed the tailwind and took the opportunity with both hands to push price action upwards. Bears certainly will have felt the pain and might be seen cutting their positions further, which means they need to buy in the market and jack up the price in that move. Expect some resistance at $0.00001060 near the 200-day Simple Moving Average (SMA), but once through there a clear road toward $0.00001100 is forecasted.

SHIB/USD  4H-chart    

SHIB/USD  4H-chart    

As mentioned above, that 200-day SMA could prove to be a bit difficult to break back above. From a purely technical angle, it is the ideal place for a dead-cat bounce with a firm rejection at $0.00001060 followed by a massive sell-off that breaks $0.00001000. The bottom level to look for is near $0.00000966, where some support could be found after a 10% sell-off.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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