Shiba Inu price will drop back to $0.00001

Shiba Inu (SHIB) price is stalling this morning on its recovery path from the slaughter it underwent last week. Over the weekend, investors got time to reassess the situation, but already then, some clouds were forming with several questions raised concerning the viability of cryptocurrencies without the regulation and backing of a central control mechanism. To make matters worse, investors got another motivational push to exit their positions in cryptocurrencies after data from China spelled out an even worse guide toward global growth than expected, which is linked with the rise and fall of cryptocurrencies and could result in a 50% correction for SHIB price.

SHIB price gets setback linked to Bitcoin price dropping below $30,000

Shiba Inu price was trying to make its way out of the penalty box, but after just two calm trading days over the weekend, SHIB has been benched again. More investors have pulled out after harmful data out of China, showed that current lockdowns are biting into the economy and will filter into negative global growth to come. This, mixed with all other tail risks that are hanging on the price action, suggests cryptocurrencies are not in good shape to rally and see inflows.

SHIB price failed to keep above $0.00001209, a line in the sand where normally a rally should have been sparked up to $0.00001708. But instead, price is set to slip below and break lower towards $0.00000965, which would be a big psychological blow for traders. Once that level gets broken to the downside, expect to see a massive sell-off, where SHIB price will quickly cover ground down towards $0.00000655.

SHIB/USD daily chart

There is a slim chance that the monthly S2 support level at $0.00001122 could trigger a bullish turnaround, together with the Relative Strength Index (RSI), which is yet again set to break into the oversold area. That could limit bears from adding to their positions, possibly even triggering them to take some profit, since a possible test below $0.00001 failed as the dollar this morning backed off a bit and opened room for SHIB price to fight back against bearish pressures. That could come with a daily close above $0.00001209 and set the scene for a rally higher towards $0.00001708 by the end of this trading week if dollar weakness persists.