Jonathan Morgan
Independent Analyst
- Shiba Inu price has maintained most of its gains from last week's flash crash lows.
- SHIBA's congestion creates opportunities for the long and short sides of the market.
- Upside potential is the most unlikely direction as downside risks remain a concern.
Shiba Inu price continues to consolidate after last week's flash crash. However, despite a flurry of activity across the cryptocurrency market, SHIBA has not seen any marked difference in volume participation – a possible warning signal for bulls.
Shiba Inu price is likely to retest the $0.000016 value area – but a move further south is more probable
Shiba Inu price action, from the perspective of the Ichimoku Kinko Hyo system, is decidedly bearish. On its 3-week, weekly, and daily charts, SHIBA is below all of the Ichimoku indicators. However, a mean reversion higher is very likely because of how swiftly and dramatically SHIBA moved last week.
An extremely important time cycle within the Ichimoku system may trigger a big move for Shiba Inu price. There is a Kumo Twist present today on the daily chart. Kumo Twists are occurrences when Senkou span A crosses Senkou Span B – visually, this is identified when the Cloud changes color from red to green or green to red.
Kumo Twists can often give traders and analysts a 'heads up to where an important swing high or low may develop – especially if the instrument was trending strongly into when the Kumo Twist occurs. For Shiba Inu price, this means that SHIBA could see a dramatic drive higher to cover the large gap between the Kijun-Sen and the bodies of the daily candlesticks - but probably not until SHIBA hits new lower lows.
SHIBA/USDT Daily Ichimoku Kinko Hyo Chart
Upside potential for Shiba Inu price in the event of any bullish momentum will likely be capped near the $0.000016 value area where the 100% Fibonacci expansion and daily Kijun-Sen currently exist.
Downs risks for SHIBA remain the most likely direction due to its position within the Ichimoku system but may be limited to the $0.000010 range.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.