Shiba Inu price set to test the low of January in the coming week

Shiba Inu (SHIB) price is not enjoying the past two weeks of price action is the price has slid to the downside, burning through roughly 40% of value. Although bulls have tried to catch the price action in SHIB for a turnaround, bears weigh too heavy on SHIB together with headwinds from global markets and geopolitics as main themes for the past week. Expect price action to slide further to the downside and go for a retest of $0.00001708, with bulls and investors awaiting the right sentiment in global markets to get involved.

Shiba Inu set for another drop between 5% to 10% before bulls will engage

Shiba Inu is not in a sweet spot and has not seen bulls stepping in to save the day, although there have been signs of bulls trying to overhaul the current trend. But headwinds coming from global markets have proven too big to overcome. The Fed tightening cycle announcement has scared investors and has brought a more subtle risk-off tone, which filters through in Nasdaq on the downside. This also proves why bulls have not overcome the current down march in SHIB price action.

SHIB price is technically not in a sweet spot either. As this week looks to be set to close below the 200-day Simple Moving Average at $0.00002495, that is to be conceived as a very bearish signal that could set the tone for more downside to come. It looks inevitable for next week that bears will keep the upper hand and will retest the low of last week at$0.00001708 for a retest and possible attempt for a break to the downside.

SHIB/USD weekly chart

It has often been the case that sooner or later, investors will look beyond the taper tantrum and will start to see the potential of cryptocurrencies, which will trigger a quick reversal and could push bears against $0.00002495 in the first phase. With bears pushed against the 200-day SMA, a quick breach could be triggered and hit $0.00002640 to the upside, taking out several stops from bears in the process.