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Shiba Inu price sees whales continuing their path as SHIB is unmoved by Polish blast

  • Shiba Inu price ticks up 1% during European trading.
  • SHIB price is set to attack the red descending trend line as the US Dollar flirts with new highs.
  • Expect a jump but plenty of technical headwinds before the road is cleared to the upside.

Shiba Inu (SHIB) price action is set to continue its bullish path as whales are finally entering the trading action. Tuesday night's explosion in Poland saw SHIB price being unfazed, meaning that traders in their positions are sticking to their guns to see this through. Although the first cap needs to be taken, there are several technical elements to the upside before traders can relax and see a solid continuous rally unfold.

SHIB price could rally substantially if it can overcome these challenges

Shiba Inu price action is seeing momentum swinging in its favor as markets eagerly trade on the weaker US Dollar, which was the omen for most of 2022 in several asset classes. Cryptocurrencies as a group have been enjoying the big drop in the Greenback this week and are booking gains on the back of it. With more cash and big whales mixing into SHIB price action, expect to see a pop higher should the red descending trend line break to the upside under pressure that is building up as we speak. 

SHIB price action would still face two additional hurdles on the topside before traders can start sitting on their hands and see a broader stretched rally continue. That first challenge will come from the 55-day Simple Moving Average (SMA) at $0.00001080, which holds importance for most of October. The last one is the 200-day SMA at $0.00001180, which has been chopped up at the beginning of this month and, as it has been weakened, could be taken out should the US Dollar weaken further.

SHIB/USD daily chart

SHIB/USD daily chart

It must be underlined that markets are reacting on the back of lower US inflation and a lower Producer Price Index reading from Tuesday, which triggered the second round of US Dollar weakness. Markets are missing the detail here that both metrics measured October; thus, it is quite normal that they both bore a lower print. It will take more than that before the Fed takes the foot off the gas pedal. When the Fed delivers that message at upcoming events, expect to see SHIB price drop back below $0.00001000 and test $0.00000738 to the downside.

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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