Shiba Inu Price Forecast: SHIB in descent as profit-taking accelerates among early bulls


  • Shiba Inu price sees price action underpinned while tops decline.
  • SHIB could see its rally being broken as downward pressure mounts.
  • Big test ahead today in the wake of the Fed central bank decision next week.

Shiba Inu (SHIB) price is gearing up for the first real test of the year as US GDP numbers are coming out later this Thursday. From a technical point of view, the price action on the screen is not really painting a rosy picture. Expect more pressure to build to the downside with $0.00001000 as the best level for support before re-entering the SHIB trade on the long side.

Shiba Inu price sees bears crashing the party

Shiba Inu price action sees quite a lot of tail risks flaring up again as some big events, both monetary and geopolitical, are creating woes in global markets. With the official green light from Germany and the US to deliver strategic tanks to Ukraine, the equilibrium on the battlefield in Eastern Europe could shift again, which could also trigger more massive bombing in a tit-for-tat scenario. Russia says this step  increases the risk of nuclear war as well. 

SHIB could see bulls giving way due to bearish pressure mounting together with these tail risks flaring up. The price action is underpinned by the R2 and the 200-day Simple Moving Average (SMA) as supportive measures near $0.00001100. With the US GDP numbers coming out later this Thursday afternoon, that release could act as a catalyst should the number drop into contraction, which would see SHib tank quite quickly toward $0.00001000 in search of support on the back of this negative news.

SHIB/USD daily chart

SHIB/USD daily chart

With the outcome of the US GDP numbers this afternoon, a jump in GDP would be welcomed by markets as a sign that the economy in the US is still in good shape and is withstanding these rate hikes quite well. Traders will adopt the scenario that the Fed is nearly done hiking as inflation is coming down while the economy rallies on, which means that a perfect goldilocks scenario is unfolding. Shiba Inu would see its buy-side volume explode on the massive demand and quickly pierce the green ascending trend line towards $0.00001511.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple (XRP) traders’ sentiment turned positive on Friday, as CEO Brad Garlinghouse highlighted the addition of XRP-Dollar reference rate and indices to the CME Group and CF Benchmarks. 

More Ripple News

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

OpenAI, the American tech firm behind the Large Language Model ChatGPT, announced five levels towards building an Artificial General Intelligence (AGI). Employees at the firm told Bloomberg that with ChatGPT, Open AI is currently at level one. 

More Worldcoin News

VeChain break above descending trendline sparks rally speculation

VeChain break above descending trendline sparks rally speculation

VeChain price breaks above the descending trendline, suggesting a bullish move. Sideline buyers can accumulate VET between $0.0247 and $0.0239. A daily candlestick close below $0.0204 would invalidate the bullish thesis.

More VeChain News

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. 

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. On-chain analytics indicate that whales are accumulating BTC during dips, potentially foreshadowing an imminent rally in the days ahead.

 

Read full analysis

BTC

ETH

XRP