Analysis
SHIB stuck at key support: Calm before a storm?
SHIB’s recent muted price action could experience a spike in volatility. Where will prices go?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SHIB has been stuck in key support since 2 October.
- SHIB accumulation has increased since mid-August.
Shiba Inu [SHIB] has overstayed at a crucial support of $0.00000720 for over a week (since 2 October) without a significant rebound. But the calm could usher in a storm of price volatility ahead of September US CPI (Consumer Price Index) data, scheduled for 12 October.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
A previous SHIB price analysis described the low volatility as a setback to significant price action. Here’s what traders can expect ahead of a likely volatility induced by the CPI data.
Will the support hold?
Source: SHIB/USDT on TradingView
The Fed relies heavily on the CPI data to adjust its rate targets accordingly. This directly affects stock markets and other risk assets like crypto. As such, the CPI release could induce price volatility.
If the data favors bulls, SHIB could swing towards the immediate overhead targets of $0.00000739 and the H12 bearish order block (OB) at $0.00000760 (white). A subsequent hit of the bearish OB could set SHIB to a potential 6.5% gain.
However, an extended pullback and crack of the support zone and H12 bullish OB of $0.00000713 – $0.00000727 (cyan) will weaken SHIB further. In such a case, the next support level to watch out for was $0.00000698.
Meanwhile, the negative RSI at press time demonstrated high selling pressure. In addition, the Spot market demand wavered since mid-September, as illustrated by OBV fluctuations.
SHIB’s accumulation increased
Source: Santiment
SHIB’s drop from mid-August and range-formation afterward provided discounted offers to buyers. As a result, SHIB saw steady accumulation since mid-August, as confirmed by the rising 90-day Mean Coin Age over the same period.
However, sell pressure spiked, as shown by the surge in Supply on Exchange as more SHIB were moved to central exchanges for offloading.
How much are 1,10,100 SHIBs worth today?
Besides, the token’s dip in Network Growth underscored a decline in network traction, which could delay further revival at the support level.
Nevertheless, the expected mid-week volatility could change the above metrics. Traders should track Bitcoin’s [BTC] price action for optimized trade set-ups.
