From its previous bull market top of approximately $0.0000885 in October 2021, the Shiba Inu price has since corrected 80% to around $0.0000175.
Then it put in a 100% bounce this week back to $0.000035, leading investors to ask if Shiba Inu will go up in 2022 and make new all-time highs.
2022 Shiba Inu Price Action
Based on the Fibonacci retracement levels marked on the SHIB price chart above, Shiba Inu bounced from its 0.236 Fibonacci line in late 2021 and again in early 2022 – showing buyer interest at this level. Fibonacci levels tend to act as strong support and large buyers place bids at these areas.
An early wick towards that line – at a price of just over $0.000028 was front ran, bouncing before reaching it, and two furthers wicks bounced at that support line.
The price did eventually break below that area, however that was at a time when the stock market and Bitcoin – which has been correlated to the S&P 500 recently – also crashed and set new lows.
Paypal, Netflix and then Facebook saw large losses in marketcap and the S&P 500 wicked below its 200 daily SMA (simple moving average). The markets have since stabilised and has seen a rally alongside some bullish news updates such as Russia announcing they own over $200 billion in Bitcoin and India relaxing its stance on cryptocurrency.
Bitcoin has since regained the price level where Facebook and Instagram announced they would support the minting of NFTs and is currently trading at around $43,000 after a spike back to $45,500.
This has improved investor confidence in altcoins and more ‘risk on’ assets such as meme coins – both Dogecoin (DOGE) and Shiba Inu saw rallies this week, although SHIB’s was larger.
This month lead Shiba Inu developer Shytoshi Kusama announced that Shiba Inu has signed a partnership with fast food chain Welly’s, and will be opening SHIB themed stores where customers can use the meme token to make payments and purchase NFTs.
Shiba Inu also announced plans to finalize the beta launch of their decentralized governance forum Doggy DAO, which will allow SHIB token holders and community members to have a say in the Shiba Inu project.
Via Techie Digest
Will SHIB go up in 2022?
Many investors and traders will have had their stop losses under the 0.236 Fibonacci line – the brief two week deviation below that line followed by a strong reclaim of it on increasing volume, suggests that may have been a ‘shakeout’, common in crypto markets.
If Shiba Inu can retest and hold that level it would put in a higher low and break the current bearish market structure (of lower highs and lower lows). We’d expect it to then enter a new sideways range and at least test the 0.382 Fibonacci level in early 2022 – at a price of $0.00004.
If the SHIB price can reclaim that level to the upside, it would also make a higher high and suggest a new Shiba Inu bull cycle has been confirmed (uptrends consist of higher highs and higher lows). The next price targets would then be at each Fibonacci retracement level – at just under $0.00005, $0.00006 and just over $0.00007.
Technical analysis (TA) is not an exact science. We would expect those levels to act as resistance on the way up however as traders that bought the dip take profit near those round numbers, which can act as psychological resistance for sellers – although they can also be attractive to new buyers.
Note on the graph above how they acted as support and were flipped to resistance on the way down – in late October the 0.618 Fib gave several bounces then was a good price to short in November. No daily candles managed to close below the 0.5 Fib in early November, then in late November none managed to close above. In late December the SHIB price put in a lower high just under the 0.382 Fib.
In the next few days we will see if Bitcoin can put in a higher low around $39 – $42k. If it can we’d expect it to retest the 21 weekly EMA from below – an important high-timeframe support and resistance level for Bitcoin. Currently that EMA is at just over $50,000.
Ethereum has reclaimed the $3,000 level which is usually a good sign for altcoin prices and can result in an ‘altcoin season’.
Elon Musk tweeted in January 2022 that Tesla would accept DOGE as a payment method for merchandise, however the business magnate and celebrity has been quiet on Shiba Inu. Another SHIB related tweet from him is overdue and could cause another pump.
Guides on how to buy Shiba Inu have been appearing in the Economic Times and SHIB was recently listed on eToro, under the ticker SHIBxM. Market sentiment is positive and it is possible Shiba Inu retests it’s previous all-time high as Bitcoin did.
Will Shiba Inu reach 1 cent?
In terms of will Shiba Inu reach 1 cent, at that price the Shiba Inu marketcap – currently $17 billion – would be 300x larger, and flip Bitcoin to become the largest cryptocurrency. That is unlikely to happen – although Ethereum may achieve that, referred to as ‘the flippening’ – and a high ROI can still be achieved by investors even it doesn’t.
Currently Bitcoin’s marketcap is approximately 50x higher than SHIB’s, at 820 billion. Bitcoin’s market capitalization has previously exceeded $1 trillion when the price of Bitcoin was over $60,000, and Shiba Inu once had a marketcap of over $32 billion.
The most bullish investors ask will Shiba Inu reach $1, which is less likely for the reasons above, and would likely require the price of Bitcoin itself to make new all-time highs. Some billionaire investors in Bitcoin such as the Winklevoss twins do see Bitcoin reaching $500,000 one day, based on their thesis that it overtakes Gold as a store of value and inflation hedge based on its finite supply.
Gold currently has an $11 trillion marketcap, which is slightly over 10x that of Bitcoin – hence a 10x increase in the Bitcoin price if it one day becomes a ‘digital Gold’ that matches Gold in popularity, would put it at half a million dollars per coin.
Shiba Inu would then still need to be around at that time – many altcoin projects fail. We recommend diversifying your portfolio into a mix of major cryptos such as Bitcoin and Ethereum, with a smaller allocation to meme tokens. Also consider speculating on new projects that are not yet listed on large crypto exchanges, that could potentially be the next Shiba Inu.
Your capital is at risk.