- Red flags for Shiba Inu as three bearish strikes put SHIB on course for a 17% loss.
- Markets, in general, are going into hibernation mode to ride out rising tensions in Ukraine.
- Expect the downtrend to continue until the floor is reached at around $0.00002100.
Shiba Inu (SHIB) price action is in control of the bears as the bulls have given up their edge and are falling on top of each other to break out of the price action of the SHIB as it breaks down for a third consecutive day. With three bearish signals on the technical front and the collapse of peace talks between Russia and Ukraine, the backdrop looks set for more downturns to come. From today’s opening, SHIB price action is expected to correct a further 17% before the current intermediate floor is reached for a test of $0.00002100.
SHIB Price Action Tracks Global Markets, Sees Safe Haven Offers Trump Upside Potential
Shiba Inu price action is under siege from traders after a series of bearish moves topped the price action. On Wednesday, the first negative signal came from a false break and an upside trap, at $0.00002707 and the monthly pivot. The bulls broke above but were swept away by the bears, pushing the price action below the 55-day simple moving average (SMA) at $0.00002600. The SMA in turn triggered a higher side rejection again on Thursday as traders were squeezed out of their positions.
The pain for SHIB traders looks far from over as in morning trading during the ASIA PAC session, the third hit came with a break below yesterday’s low, resulting in price action hanging above of an abyss of about 17%. The first and only real solid support on the downside is around $0.00002100, with the green ascending trendline containing five strong tests proving that it is a line in the sand where the bulls will engage full force to prevent the price action from falling further. The psychological $0.00002000 should add strength to the level, but a bumpy weekend could see further pushback towards $0.00001883 at the S1 monthly support level.
SHIB/USD daily chart
As stated in the introductory statement, this is all a result of the situation in Ukraine and global markets increasingly going into safe haven mode. All it would take is some positive news hinting at a fix in Ukraine that would trigger a quick and smooth rally back towards $0.00002800. With this move, not only would the red descending trendline on the upper side be broken, but the 78.6% Fibonacci level would also come into play, opening the door for further upside to come.
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