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SHIB Price Analysis: Will SHIB Prepare for a New Decline?

source-logo  en.coin-turk.com 09 October 2023 19:33, UTC

Shiba Inu (SHIB), has stayed above the critical support of $0.00000720 for over a week without any significant recovery. However, the calmness could be a sign of price volatility leading up to the release of the September US CPI (Consumer Price Index) data scheduled for October 12th.

SHIB Price Analysis!

A recent SHIB price analysis identified low volatility as a barrier before significant price movement. Investors are being advised on what to expect before the potential fluctuations caused by the CPI data. The Fed relies heavily on CPI data to adjust their interest rate targets, which can directly impact markets and other risk assets like cryptocurrencies. Therefore, the release of CPI can cause price volatility.

If the data supports the bulls, SHIB could move towards $0.00000739 and the H12 bearish order block (OB) at $0.00000760. A subsequent hit to the bearish OB could potentially bring SHIB to a gain of 6.5%. However, an extended pullback from the support zone could weaken SHIB further towards the H12 bullish OB at $0.00000713 to $0.00000727. In such a case, the next support level to watch out for could be $0.00000698.

Silence Before the Storm in SHIB!

At the time of writing, the negative RSI may indicate high selling pressure. Additionally, the spot market demand has been fluctuating since mid-September, as indicated by the OBV fluctuations. The August decline and subsequent consolidation of SHIB provided buyers with low-priced offers. As a result, SHIB has seen steady accumulation since mid-August, as confirmed by the increasing 90-day average token age.

However, increased movement of more SHIB to centralized exchanges has led to an increase in selling pressure, as indicated by the increase in supply on exchanges. Moreover, the decrease in network growth of the token has highlighted the decline in network attraction, which could delay further revitalization at the support level. Additionally, the expected mid-week volatility can alter the mentioned measurements. Investors are advised to monitor the price movement of Bitcoin for optimized trading setups.