The Shiba Inu price crossed an important support level as demand for digital currencies evaporated. The SHIB token is trading at $0.0000174, which is the lowest since January this year. It has declined by more than 80% from its highest level this year. As a result, the coin has a market value of over $9.2 billion, making it the 16th biggest coin globally.
Shiba Inu and other cryptocurrencies have been caught between a rock and a hard place. On the one hand, data from most exchanges show that demand for cryptocurrencies has waned substantially in the past few months. But on the other hand, the substantial stimulus packages that existed during the pandemic have eased this year.
At the same time, most people who spent most time day trading in 2021 have gone back to work. This is reflected by the fact that the American unemployment rate has slipped to 3.6%, while meme stocks that were a favourite for traders have also declined.
Meanwhile, the Federal Reserve has turned increasingly hawkish and hinted that it will continue hiking rates and then start implementing a quantitative tightening policy. This explains why most assets like stocks and bonds have declined sharply recently. Therefore, with the Fed in the driver’s seat, there is a likelihood that the Shiba Inu price will react to the upcoming US consumer inflation data.
Shiba Inu price prediction
The daily chart is not looking good for the SHIB price. The coin declined below the important support at $0.000017, which was the lowest level in January this year. It has also moved slightly below the descending trendline that is shown in red. Additionally, it has moved below the 78.6% Fibonacci Retracement level.
Therefore, the coin will likely keep falling as bears target the next key support level at $0.000011. However, a move above the key resistance at $0.000020 will signal that there are more buyers in the market. This opinion is in line with my SHIB prediction for May.
