Analyst Filip L notes that the Shiba Inu (SHIB) is set to close with a weekly loss after the bulls failed to break above the 55-day SMA. A break below the green descending trendline is needed to see further downward pressure build up.
“Shiba Inu price confirms little tailwind behind bulls”
The Shiba Inu (SHIB) is currently under scrutiny of a bearish triple element that outweighs any bullish argument. Not to mention geopolitical headaches and stagflation concerns, technically the SHIB price is triggering a few bearish signals for the markets. In the current situation, it seems almost impossible for the bulls to take a stand and try to make a profit unless the situation improves. But until then, the Shiba Inu can only go one way: Down.
The price of the Shiba Inu isn’t just facing headwinds. Rather it is currently facing a hurricane with a mix of several winds that the bulls cannot match with any arguments for making new highs. The red descending trendline is the best proof of this and the price action below remains in check. Second, with the 55-day Simple Moving Average (SMA) trading further below the 200-day SMA, the death cross opens further, which begins to act as the third argument in price action as a price cap. Wednesday proved the rally cut short before reaching the 55-day SMA.
SHIB price action looks like it will start next week at the lower end at the green supportive trendline. Once a clear is broken below, the bulls may escape the scene as new space is open for downside trading and a swing trade towards January lows makes the most sense. This means a drop below $0.0002000 and the $0.001893 monthly support of S1 towards $0.00001704 and possibly the bulls will want to try and retrace the dip again next week.
As all other assets are only trading on Monday, the price of the Shiba Inu could be in a solid 58% rally as investors will want to be part of the market before official trading begins. There could be sharp gains in price action above the monthly pivot above $0.00002715 and continued towards $0.00003697 over the next week until the end of next week.