Shiba Inu price to make a U-turn and tag $0.000017

Shiba Inu (SHIB) price is on the verge of dropping below $0.00001000, but help has arrived from an unexpected source and is preventing the decline in its tracks. Overnight the PBOC  performed a rate cut that sparked a rally in equities during the ASIA PAC session, and US futures are pointing to dark green returns. Following the PBOC’s move, a massive tailwind is hovering over markets and lifting spirits in cryptocurrencies, with the potential for a solid rally at hand.

SHIB price set to rally, but be grateful

Shiba Inu price is seeing a lift in sentiment and momentum building which could lead to a pop above $0.00001209 instead of a slide below $ 0.00001000, as had been forecast for this week. The uplift and change in sentiment came after the PBOC cut interest rates in some of its lending facilities, triggering a massive risk-on rally in the ASIA PAC session. Although it looks unlikely a tail risk will throw a spanner in the works today, it needs to be underlined that upward moves are still capped, and a downtrend is still the overall consensus, so keep that in mind while trading. 

SHIB price is thus set for a rally going into the Friday close with the potential to jump to $0.00001500, just below the monthly S1 support level at $0.00001567. In case bulls can continue surfing on that tailwind, expect to see a pop above the S1 and an attempted close above $0.00001708. Going into the weekend, the scene could be set for a rally higher to $0.00002000, but be aware of the 55-day Simple Moving Average and the green ascending trend line as significant hurdles that will need more fuel to overcome the upside.

SHIB/USD daily chart

Risk to the downside is present with a possible false break above $0.00001209. That could come if European and US traders get the chance to look at what the rate cut in China means, and write off its importance as only affecting lending for mortgages and constructions. If so, the victory dance could quickly be over. Indeed, this may even lead to concern if analysts assess recent lockdowns as weighing more on the Chinese economy than previously foreseen. This could then see another round of risk-off with cryptocurrencies on the back foot and SHIB set to drop below $0.00001000, whilst $0.000000655 could come in as a offering a potential safety net.