- The price of the Shiba Inu has moved in a narrow range this week, going nowhere.
- The SHIB price should move in tandem with the various asset classes in the financial markets.
- An anomaly can point to a potential drop in price action or the absence of normal volume, leading to price action nowhere.
Shiba Inu (SHIB) price action is flirting with both sides of the trading spectrum and has not moved much between bears and bulls. It has taken until the weekend to finally see a sense of direction, and considering these elements against the current volatile week in the financial markets points to a problem. The point is that SHIB price action has broken out, it is trading in light volume, and it will soon catch on to trading reality.
SHIB price risk is catching up with tail risk
The price of the Shiba Inu has been flirting with an up and down volatility trend line (red) throughout the week that has been hanging over the price action since mid-August. This is not a problem, as it could point the bears to defend the trendline and set up a trap for the bulls, while the bulls may want to make a breakout and trigger a rally away from the trendline. However, it is rare to see such muted price reaction as global markets were on fire for four consecutive days.
Thus, the price of SHIB has to catch up with reality as many asset classes have moved bullish, while the price of SHIB seems to be largely unaffected by the moves that led to the market decline. , One reason could be that the price action still rests at $0.000001011, but don’t expect that to face a huge list of tail risks that will soon begin to weigh on SHIB’s price action. Once this happens, look for a sharp decline towards $0.00000712 and say goodbye to the $0.000001000 resistance.
SHIB/USD Weekly Chart
Even though SHIB price may move away from the descending trend line (red), the next problem arises with the 55-day simple moving average (SMA) appearing as the first price range at $0.000001245. If this does not limit the rally, the 200-day SMA will certainly do so at $0.00001500, as it did during the summer months. So either way the question is how sustainable a rally will be as the tail risks are too high to count or bear.