Shiba Inu Price Prediction: Is the Recovery Still Intact?
The Shiba Inu price recovery has stalled, signalling that the recent rebound may have been a dead cat bounce. The SHIB token is trading at $0.000012, which is about 40% above the lowest level last week. However, the coin remains about 85% below the highest level in October 2021. Other coins have also retreated, with Bitcoin falling by 300 points.
The SHIB price erased some of the gains it made during the weekend as worries about the global economy. This happened after China published weak economic data. According to the country’s statistics agency, retail sales declined by 11.1% year on year. This decline was worse than the median estimate of 6.6%. In addition, industrial production declined by more than 2.9%.
Therefore, the Shiba Inu price has declined because of the weak sentiment in the market. Indeed, Chinese stocks have declined, with the Shanghai Composite falling by 0.35%. In the United States, futures tied to the Dow Jones and Nasdaq 100 indices have fallen by more than 0.90%. In the past few months, digital coins have had a correlation with American shares.
Shiba Inu price prediction
On the 4H chart, we see that the SHIB price made a strong recovery in the past few days. It rose by 64% from the lowest level on May 12. The coin maintains slightly below the 25-period and 50-period moving averages. The Stochastic Oscillator has moved slightly below the neutral level of 50. At the same time, the price has moved slightly below the dots of the parabolic SAR.
Therefore, there is a likelihood that the Shiba Inu price will continue falling since it appears that the recent rebound was a dead cat bounce. If this trend happens, SHIB will likely fall to the next key support at $0.000010. On the flip side, a move above the key resistance at $0.000012 will invalidate the bearish view.