For more than a week, Shiba Inu has traded within a narrow price range of $0.0000082 and $0.0000097. Today, it is down by 2 per cent, extending yesterday’s 4 per cent plunge. However, despite the drop, Shiba Inu has managed to stay within the narrow range, which formed after the recent 34 per cent price plunge resulting from FTX’s collapse that happened early this month.
Despite being stuck in a horizontal market for more than a week, there is a high likelihood that we might see Shiba Inu starting a new bearish trend. Part of the reason for my bearish outlook on Shiba Inu is due to the FTX crypto collapse.
Although the markets look to have cooled from the selloff that resulted from the FTX collapse, there is a high likelihood we might be at the start of similar collapses of crypto firms that relied heavily on FTX. Recent reports indicate that firms such as Genesis have already started freezing withdrawals. There are also reports that firms such as Gemini and South Korea’s GOPAX exchanges are also affected.
With Shiba Inu’s significant correlation with the industry, another industry’s bear market will also see the memecoin price dropping. As a memecoin, the current industry uncertainty has also seen investors shunning risky projects, which has resulted in the project getting stuck in a horizontal market.
Therefore, in the next few trading sessions, I expect Shiba Inu’s price to break out of the current narrow price range of $0.0000082 and $0.0000097 to the downside. There is a high likelihood we might see prices dropping aggressively, which will see Shiba Inu’s price possibly trading below the $0.0000050 price level.
If the current fundamental factors, such as the continued collapse of cryptocurrency companies and the continued BTC plunge, then it is likely we might see the Shiba Inu price fall further than my expected $0.0000050. However, a trade above the $0.000010 price level will invalidate my bearish trend analysis.
This post was last modified on Nov 21, 2022, 14:40 GMT 14:40