John Isige
Shiba Inu price is approaching a crucial juncture, where it might shoot to $0.000018 or drop toward $0.000008 in the short term. The second most popular meme coin is trading at $0.00001166 amid an influx of trading volume to $300 million over $24 hours.
Like other cryptocurrencies, SHIB’s short-term technical outlook will highly depend on the soon-to-be-released United States Federal Reserve decision on the first likely interest rate hike of 2023.
Overall, investors are expecting the Federal Open Market Committee (FOMC) to settle for a 25 basis points increase. Such a decision will consider the recently released US Consumer Price Index (CPI) figures, which revealed inflation is easing.
However, some experts warn the slight decline in inflation in December compared to November is not enough to warrant a massive drop in the expected interest rates hike. Some forecasts appear to favor a 50 basis point spike, similar to December as this will give the Fed more control over inflation and pave the way for a sustainable drop in the rates in the coming months.
How Is Shiba Inu Price Preparing for The FOMC Meeting Outcome
Shiba Inu bulls have a daunting task to reclaim two key levels, starting with the 200-day Exponential Moving Average (EMA) (in purple) at $0.00001186 and the upper boundary of the falling trend channel, as shown on the daily time frame chart below.
Failure to achieve this milestone, Shiba Inu might be forced to seek more liquidity. One of the tentative support areas for traders to keep in mind is the area slightly above $0.00001. It holds the 50-day EMA (in red) and the 100-day EMA (in blue).
The buyer congestion in that zone might be suitably positioned to absorb the overhead pressure. Otherwise, Shiba Inu price would be forced to seek refuge at the channel’s midline, but to tap an enormous buyer congestion zone, SHIB would be forced to look down to $0.000008.
According to the Money Flow Index’s (MFI) declining trend into the neutral zone, there is more volume outflow than inflow into Shiba Inu price markets. In other words, investors are more concerned about selling SHIB as opposed to buying the meme coin at the moment. Possibly, the same investors will buy Shiba Inu after the FOMC, especially with the expected launch of the new Shibarium protocol serving as a catalyst.
Traderchamp_, a popular yet anonymous analyst on Tradingview, says that if Shiba Inu can rise above the falling channel’s upper resistance, a bullish breakout would follow. He forecasts a 30-40% move in SHIB to highs around $0.000018.
However, he warns of the recent and still ongoing bearish sentiment where the correction may stretch further if Shiba Inu price respects the upper boundary of the trend channel. In such a scenario, we are likely to witness a dip to $0.000008 and if push comes to shove, SHIB could tag $0.000006.
“The prices and the bullish closings of recent daily candles are following a neutral or bearish sentiment by respecting the upper boundary and the resistance formed. If the price still manages to respect the upper boundary and the resistance as a sell zone, there we may see another bearish trend that can revisit back toward the support highlighted,” traderchamp_ opined on Tradingview.
Still backing a bullish outcome for Shiba Inu price is FXCM, a broker on Tradingview. He has a bullish bias for the meme coin based on the position of SHIB price above the Ichimoku cloud. For entries placed around $0.00001295, this analyst predicts take profit roughly at $0.00001518, where the previous swing high sits.
What Key Fundamentals Back Shiba Inu Price Rally
Shiba Inu sits on top of a robust support area strengthened by almost 20,000 addresses that previously purchased 87 trillion SHIB around $0.000011. Investors in this zone would be willing to through their weight behind Shiba Inu price to back a rally in the coming days.
The same IOMAP model from IntoTheBlock reveals that SHIB is facing weakening hurdles to the upside, with a break above $0.000012 likely to trigger a massive rally. If support mentioned at $0.000011 holds, investors may ignore the bearish sentiments backing a drop to $0.00001 and $0.000008 in favor of an upswing to $0.000018 in the coming days, possibly weeks.
Will Shibarium Catalyze Shiba Inu Price Rally To $1?
The Shiba Inu community is waiting for the launch of Shibarium, a layer 2 blockchain that will revolutionize the Shibtoken ecosystem. Although marred with unending delays, core developers say it will debut soon, perhaps before the end of Q1 2023.
Shibarium has been designed to focus on solutions, innovation, and security for the fast-growing decentralized finance (DeFi) space. Although dedicated to Shiba Inu, the new protocol runs on the Ethereum blockchain, which hosts various tokens in the ecosystem such as SHIB, LEASH, and BONE.
The developers of the second-largest meme coin believe Shibarium will bring forth “the benefits of scalability, faster transaction times, lower fees, and an expanded development framework.” It will tackle the issue of high transaction costs witnessed in the Web3 space and serve sub-areas such as the metaverse and gaming.
Shibarium is perceived to be the biggest catalyst for Shiba Inu price, with some believing it may propel SHIB to close in on the $1 mark.
Shiba Inu Alternatives To Buy Today
Before buying Shiba Inu, investors may want to consider some of the best crypto presales in the market. A dedicated team of experts reviews various tokens every week to come up with a list of the best altcoins to buy as you build your crypto portfolio.
Meta Masters Guild (MEMAG) is a new web3 and gaming crypto project attracting attention across the market. In a matter of weeks, the team has raised $2.26 million in a presale that continues to sell out fast.
Unlike other play-to-earn ecosystems, Meta Masters Guild is focused on introducing games that people like to spend time on. Moreover, users on this platform earn in an in-game currency called Gems, which can be exchanged for MEMAG tokens and staked for additional rewards.
Furthermore, there are numerous ways to earn while in this up-and-coming ecosystem through activities such as game development, supply of in-game items, and content creation among others. Interested investors should click the link below to learn more about the presale and take advantage of the current price of MEMAG tokens before it rises again.
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This article was written for Business 2 Community by John Isige.
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