fxstreet.com
- Shiba Inu price has been trading higher as high rollers bought massive stakes in cryptocurrencies.
- Still, SHIB price is still under pressure from a death cross, with the moving average acting as a cap.
- A return to a situation in which more bulls are willing to put money to work is possible.
Shiba Inu (SHIB) price is seeing a bit of a pullback and could drop even further in search of support after bulls failed to keep their act together during the recent rally and began grasping at early profits. SHIB price could stand to lose another 15% before support is found. Investors will need to do more and put money to work in order to stem the sell-off and trigger another test and break above the 55-day Simple Moving Average (SMA).
Shiba Inu price is awaiting 55% gains
Shiba Inu price has been on the back foot after it lost backing from Elon Musk, but then some other big investor whales picked up the currency, initiating a relief rally. That recovery now looks to be cut short, however, as bulls have been unable to refrain from taking profit, inadvertently triggering a fade to the downside that only made even more bulls sell their holdings for fear of a complete collapse of the trade. Bear in mind that the current sentiment in global markets is still very jittery, where a collapse is possible at any moment on the back of comments from central bankers.
SHIB price will need to drop towards $0.00000965 to find support. In such a scenario, the Relative Strength Index will have cooled down after rising too sharply too quickly. Expect $0.00001209 and the 55-day SMA to be broken at the next attempt, opening up a vast area where SHIB Price can rally onwards to $0.001708 and make a whopping 55% profit in that move.
SHIB/USD daily chart
The big risk with this fade is that support at $0.00000965 will not hold at all. The RSI could drop below 50 on course towards the oversold level, dragging the price action along with it. That could result in a test of the lows of 2022 and even new lows towards $0.00000655, adding another 40% of losses to the count.