• Shiba Inu price action is set to close the week at a weekly loss.
  • SHIB price has seen bulls trying to break above a bearish power.
  • Expect a bull trap to be formed now, but the summer seasonality to see it overturn further down the line.

Shiba Inu price is set to close out the week with a loss after the bullish soft patch in the last week of June. Where some cryptocurrencies saw a complete collapse of the price action with lower lows against the lows from last week, SHIB price looks in far better shape and still has the bearish cap in hindsight, with bulls set to strike at any moment. For now, expect the bearish momentum to overweigh, but a turn in sentiment looks to happen over the coming summer weeks.

SHIB price could be set for a slim 20% decline

Shiba Inu price slipped further to the downside after price action tried to pop above and break the 55-day Simple Moving Average (SMA) that has been hanging over the price action as a watchdog keeping the downtrend in play. Bulls saw their attempt cut short and got trapped in a bull trap, squeezing them to the downside and trying to have them cut their losses. However, an acceleration to the downside did not happen, as seen with some other cryptocurrencies. 

SHIB price could still slide below July’s new monthly pivot at $0.00000984 and close there on Sunday night, with possibly $0.00000800 as a target around the S1 support level. With the pivots of July much close together, support and resistances will mute price action even further and see momentum building for a breakout. To the downside, that could still mean a drop to $0.00000507.

SHIB/USD weekly chart

SHIB/USD weekly chart

However, a weekly close above the 55-day SMA would be a big game-changer and could even prelude the end of the downtrend as we know it. As mentioned in the previous paragraph, with the tighter pivot levels, a break to the upside could easily rally to $0.00001708, as the summer seasonality always comes with thinner liquidity and, in correlation to that, more significant price moves. That would mean that the whales who bought into the price action a few weeks ago were on to something as they will be looking at a shiny 110% gain.




 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP