Shiba Inu (SHIB)It is stuck in the consolidation phase, showing lower highs and lower lows since Jan 22. While this consolidation creates a situation for both sellers and buyers, the price is poised for a rise.
The positive news from the global stock markets led by NASDAQ seems to give a positive momentum to the markets and crypto markets in the world in general. Waiting for the bulls to break above the 200-day Simple Moving Average (SMA) in the process and Shiba Inu priceWaiting for the 78.6% Fibonacci level to reach $0.00002782 may be the right move to invest.
The Shiba Inu price may have reached the lowest level of the year for now, after hitting the 0.00001730 level on January 22. Since then, the price has moved sideways towards the $0.0002170 level, creating a ‘lower high’ and a ‘lower high’ for consolidation between buyers and sellers.
meme coin its price has become so concentrated that the time of a breakout has now become an expected move from both sides. As global markets are at the forefront and risk assets rule prices, these headwinds will translate into cryptocurrencies, laying the groundwork for a bullish breakout to $0.00002782 as a target.
In the process, the SHIB price will clear the 200-day Simple Moving Average (SMA) from the $0.00002562 level, which won’t be a big deal as it has been breached only once.
Bulls will instead want to look at $0.00002782, which is the 78.6% Fibonacci level and an important indicator that there may be an uptrend in the making. Any further upside will depend on how tailwinds behave as the 55-day SMA looks pretty heavy around $0.00003000.
Alternatively, the consolidation could look bearish as the bears trap the bulls and price action drops to $0.00001730, possibly even the monthly S1 support of $0.00001500.
The reason for the bearish breakout may come from the very volatile economic data, which could start to point to a global recession with rising prices and worsening jobs again. This will trigger a global wave of risk aversion that could push cryptocurrencies into the background.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.