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

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

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.