- 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
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.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.