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Shiba Inu Touches Key Support That Produced 100% Rise in July; What Happens Next

Mon, 09/19/2022 - 10:03
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Tomiwabold Olajide
Shiba Inu saw faint rebound after dipping to lows of $0.00000994
Shiba Inu Touches Key Support That Produced 100% Rise in July; What Happens Next
Cover image via stock.adobe.com

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Shiba Inu briefly added an extra zero to its price tag on Sept. 18 as it touched the key support near $0.000009, from where it rallied nearly 100% in July. Shiba Inu gained nearly 100% when it rebounded from July 12 lows of $0.0000098 and reached highs of $0.0000179 on Aug. 14 after a steady climb.

TradingView
SHIB/USD Daily Chart, Courtesy: TradingView

At the time of publication, Shiba Inu was down 10% at $0.0000102. Shiba Inu saw a faint rebound after dipping to lows of $0.00000994 the prior day, as bulls lost ground amid the latest price declines on the market. The meme cryptocurrency is dangling around the support at $0.000010, where it trades presently. The next stop might be near the $0.000007 mark if the $0.000009 support falters.

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A drop near the $0.000007 level could create a double bottom pattern, which might spur a rise in the short term. To resuscitate SHIB for an uptrend, buyers might have to push the price above the daily MA 50 barrier at $0.0000126 and then the MA 200 barrier at $0.0000155, or the price might return to its current consolidation range. The RSI is approaching oversold levels of 30, which might suggest a relief bounce or at least a dead cat bounce in the short term.

However, given the current macroeconomic uncertainty, the market forecast remains gloomy and, hence, technical indicators might be put to the test.

Crypto market tumbles

Bitcoin and altcoins tumbled as investors weighed the possibility of another 75-basis-point hike from the Fed. Shiba Inu, as well, plunged 10%, mimicking the general market moves.

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The two-day meeting of the Fed is scheduled to start on Tuesday, and most market participants anticipate another 75-basis-point increase by the Fed. The Fed could raise interest rates by one full point, or 100 basis points, according to some economists.

It follows an unanticipated increase in inflation in August. Contrary to what economists predicted, the consumer price index climbed by 0.1% for the month and by 8.3% over the previous year. Investors now anticipate that the Fed will maintain higher interest rates for a longer period until prices decline.

As Shiba Inu remains correlated to the general market movement, it might be necessary to watch out for "macro bottoms" to predict SHIB's next price move.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.