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Shiba Inu Price Analysis: SHIB traders have nothing to show after last night

  • Shiba Inu price disappoints after Wednesday's massive bullish rally in financial markets.
  • SHIB has not been able to bank on the words of Jerome Powell.
  • Expect to see a lower slide as bulls stay away.

Shiba Inu (SHIB) price is set to take a step back after bulls were not keen to trade the Fed rate decision. Markets were stoked with a bullish outcome in favor of risk assets, and the self-fulfilling prophecy did occur in equities and some cryptocurrencies. With SHIB not being one of those cryptocurrencies, however, expect traders to search for better assets to place their money in.

Shiba Inu price gets a dent in its image after the Fed meeting

Shiba Inu price only showed small gains below 1% around the middle of the European trading session on Thursday. It was a bit surprising that SHIB did not pierce through $0.00001300 on the back of the Fed meeting, which was perceived as dovish toward the markets. With equities rallying firmly late into the US closing session on Wednesday, Shiba Inu has only advanced by a rather slim profit.

SHIB could take a step back, certainly seeing as the Relative Strength Index (RSI)  is near overbought yet again. Support is granted at $0.00001100 with the monthly pivot and the 200-day Simple Moving Average as a thick support layer. There is plenty of reason for bulls to get involved there and at least trigger a higher bounce.

SHIB/USD daily chart

SHIB/USD daily chart

In the statement, the Fed and Chair Jerome Powell said they would remain data dependent for the next month. That means that should data further show a sharp decline in inflation, this might have been the end for interest rate hikes, and no recession or massive contraction would be needed to stabilize the economy. Should that scenario unfold, expect to see price action quickly ramping up toward $0.00001300 and possibly even $0.00001400, with the new monthly R1 resistance level for February as a beacon and support level for the rally to pause briefly.

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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