Shiba Inu price analysis 21 Dec: is a recovery around the corner?

The bulls are trying to start a recovery for Shiba Inu

Representation of a SHIB coin featuring a shiba inu cartoon dog’s face surrounded by other cryptocurrencies                                 
What’s in store for the price of the shiba inu coin? – Photo: Shutterstock
                                

Shiba inu is the second biggest meme coin and the 13th largest cryptocurrency in terms of market capitalisation. Its popularity has soared over the year. According to BrokerChooser, Google searches for “shiba inu coin” have ballooned from 70 in September 2020 to 1.5 million in September 2021.

Brian Rose, chief executive officer of London Real, said when speaking to Yahoo Finance: “Shiba Inu as a cryptocurrency and a meme coin doesn't make sense, but what they get is community. They are presently tracking and quantifying a community on the blockchain and you can’t ignore the value of this.”

Although shiba inu has corrected sharply from its October highs, investors continue to buy at lower levels. The total number of shiba inu holders has passed one million, according to Etherscan

In a recent tweet, a Shiba Inu news aggregator said that an insider at Robinhood exclaimed the shiba inu token may be listed on Robinhood in January.

However, just a few weeks back, Christine Brown, CEO of Robinhood Crypto, said that Robinhood was not in a hurry to add support to new coins.

Shiba Inu developers said they were working on a layer two scaling solution, called Shibarium. Rumours are also rife that Shiba Inu could enter the metaverse.

Could Shiba Inu go up on the back of some positive developments? Read the SHIB price analysis to find out.

Shiba Inu price technical analysis: weekly chart

A red and green candlestick chart highlights the correction in the price of SHIB in recent weeks
Shiba Inu price analysis (weekly), 21 December 2021 – Credit: Currency.com

SHIB’s price has been in a corrective phase for the past few weeks. The SHIB/USD pair finished last week at $0.000030, with a loss of 15.96% over the previous week’s close.

A minor positive is that the bulls are attempting to defend the 20-week exponential moving average (EMA). The relative strength index (RSI) above 55 also suggests that bulls have the upper hand.

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If the price rebounds off the current level, the buyers will attempt to push the pair to $0.000053. This level may act as a strong resistance, but if crossed, the rally could extend to $0.000072 and eventually to the all-time high at $0.000085.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance and plummets below the 20-week EMA, the selling could intensify. There is a minor support at $0.000022 but if this level cracks, the pair may plummet to $0.0000078.

Shiba Inu price technical analysis: daily chart

A red and green candlestick chart highlights the variations in the price of SHIB recently
Shiba Inu price analysis (daily), 21 December 2021 – Credit: Currency.com

SHIB’s price has been trading below the 20-day EMA for the past few days. This shows that sentiment remains negative and traders are selling on rallies to the 20-day EMA. If the price breaks below $0.000028, the next stop could be $0.000026 and then $0.000022.

Both moving averages are sloping down and the RSI is in the negative territory, indicating that bears are in control.

This negative view will invalidate if the price breaks and sustains above the 20-day EMA. Such a move will be the first sign that the selling pressure has decreased. The pair could then rally to the 50-day simple moving average (SMA).

This level may act as a stiff resistance but if crossed, the next stop could be $0.000053. A break and close above this level will suggest that the bulls are back in the game.

Shiba Inu: Buy or sell this week?

Shiba Inu’s price analysis shows that the bulls are attempting to stage a recovery. A break and close above the 20-day EMA will be the first sign that the downward momentum may be weakening. The pair could then rally to the 50-day SMA. Conversely, a break below $0.000028 could resume the downtrend.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Shiba Inu to US Dollar
Daily change
0.00001436
Low: 0.00001436
High: 0.00001533

Further reading

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