- Shiba Inu price was set to close with a weekly loss after bulls were unfit to break above the 55-day SMA.
- Expect a break below the green descending trend line to see downward pressure building further.
- Support will only come in at $0.00001704, which is the low of January and for the whole of 2022.
Shiba Inu (SHIB) is under the scrutiny of a trifecta of bearish elements that outweigh any bullish arguments at the moment. Even without mentioning the geopolitical headaches and the worries about stagflation, technically, SHIB price triggers several bearish signals towards the markets. With the current situation, it almost looks impossible for bulls to take a stand and try and squeeze out gains unless the situation finally evolves. But until then, Shiba Inu can only go one way, down.
Shiba Inu price confirms bulls have too few tailwinds in their corner
Shiba Inu’s price is facing not just headwinds but rather a hurricane of several headwinds that bulls at the moment can not match with any arguments to make new highs. The red descending trend line is the best proof of that, with price action staying in check below there. Secondly, the death cross is opening up even more with the 55-day Simple Moving Average (SMA) trading further below the 200-day SMA, and with this starting to act as the third argument as a price cap on the price action, as was proven on Wednesday where the rally got cut short even before hitting that 55-day SMA.
SHIB price action looks to be going into next week around the low end on the green supporting trend line. Once a clear broke below there, expect bulls to flee the scene as a new area is open for trading to the downside, and a swing trade towards the low of January makes the most sense. That would mean a drop below $0.00002000, and even though the $0.00001893 level, which is the monthly S1 support, towards $0.00001704 and possibly printing a brief new yearly low before bulls will want to try and repurchase the dip later next week.
SHIB/USD weekly chart
With cryptocurrencies trading over the weekend, any signals of successful peace talks or Russian forces pulling back out of Ukraine would see a massive relief rally being sparked. As all other assets only trade on Monday, Shiba Inu’s price could be in for a solid 58% rally as investors will want to be part of the market before official trading begins. Expect to see sharp rises in price action above the monthly pivot at $0.00002715 and continue throughout next week towards $0.00003697 by next weekend.