Shiba Inu price has extended its previous losses as the selloff that has continued to shape the stocks market spill over to the crypto market. Indeed, in the recent past, there has been a correlation between stocks and digital assets. Notably, both asset classes are reacting to the same thing – the Fed’s hawkish pivot.
Investors are keen on how the interest rate hikes by the Federal Reserve will impact financial markets. In the past, cryptocurrencies appeared to be an asset class that didn’t necessarily react to global policy in the same way as the other financial markets. Besides, it became a highly embraced hedge against inflation.
With the expected Fed-driven decline in liquidity, the correlation between the stock and cryptocurrency markets will likely continue in the short term. Besides, some analysts are of the opinion that with the selloff recorded in Wall Street, investors will probably liquidate their positions in the crypto market in an attempt to reduce the overall losses. From this perspective, Shiba Inu price will likely remain under pressure in the ensuing sessions.
SHIB has been in the red for six consecutive sessions. The daily chart highlights that the altcoin has been on downward momentum for about three months after it hit a one-and-a-half month at 0.00008883. Since then, it has dropped by 72.37%.
Shiba Inu price is trading below the 25 and 50-day exponential moving averages. At the time of writing, it was at 0.00002460.
Over the weekend, I expect the bearish outlook to hold. With this in mind, Shiba Inu price will likely continue to find resistance along the 25-day EMA at 0.00003036. On the lower side, 0.00002350 may remain steady in the short term. A move past that level will probably have the bears retest October’s low 0.00002000. A move above the aforementioned resistance level will invalidate this thesis.
This post was last modified on %s = human-readable time difference 15:24