- Shiba Inu price drops another 6% intraday as US dollar strength keeps pushing on.
- SHIB price downside is limited as a significant support level kicks in.
- With the RSI in oversold, expect to see a sharp upswing this week toward $0.00002200.
Shiba Inu (SHIB) price is set to break its five-day losing streak as the US dollar is set to touch bottom and the Relative Strength Index (RSI) points to the end of the downturn. Shiba Inu price could rebound as the dollar will weaken throughout the week and the RSI picking up steam are two forceful elements that could set up a 30% upswing. That would bring price action back to $0.00002200, near the green ascending trendline, possibly rebooting the uptrend for 2022.
SHIB price set to perform swing trade, upholding 30% gains
Shiba Inu price has dropped 22% in the past few trading days as the US dollar strength kept persisting, with markets on edge over the next steps from Russia on Ukraine and now possibly Moldova coming into play. With this additional widening geopolitical risk, investors keep searching for safe havens and are even more convinced about their repositioning as Shanghai enters the fifth week of lockdowns. With more and more cuts in economic growth globally, 2022 is set to become a year of 0% growth, which will leave its marks in risk assets, with cryptocurrencies and stocks upfront.
SHIB price has thus undergone that reshuffle and now looks set for some upside moves, with the RSI trading in the oversold area. Bears will potentially try to squeeze out the last gains towards $0.00001577, which is the monthly S1 support level, but $0.00001708 should be the line in the sand where SHIB price should bounce off. Expect to see an upswing towards $0.00002200, testing the green ascending trend line used as a guide in the uptrend from February and March earlier this year.
SHIB/USD daily chart
As the losses start to mount and get bigger intraday, the risk is building for a falling knife event where investors would completely turn their back on cryptocurrencies. That could see an accelerated move towards $0.00001209, which would bring SHIB price to the low of October 2021. An additional risk is that bears set their target below $0.00001000, breaking a crucial big figure in SHIB price, which would amount to almost 43% of losses.
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