Shiba Inu (SHIB) price fell more than 10% to $0.00001641 on May 9 amid a broader crypto market decline. This year, SHIB returns were 50% below zero, one of the worst performances of a top-tier cryptocurrency in 2022.
Last week, luxury fashion brand Gucci named the Shiba Inu to the list of tokens it would accept for payments at five of its US-based stores. Nonetheless, the bulls have ignored major adoption news as SHIB price continues to slide under macro and technical pressures.
Shiba Inu triangle break
The prospect of the Shiba Inu facing more annual losses increases as it remains on track towards its “symmetrical triangle” breakout target near $0.00001197.
The level, which is around 30% below the May 6 price, is the result of a technical rule that measures the profit targets of the symmetrical triangles by adding the maximum distance between the upper and lower trend line of the structure to the breaking/breaking point.
However, SHIB’s shorter time frame charts reflect an interim bullish bias.
20% short-term bounce up for grabs
SHIB has dipped close to the red horizontal line near $0.00001667, which has served as an accumulation zone for traders three times since October 2021. For example, Shiba Inu rallied more than 100% two weeks after testing $0.0000167 as support in January 2022.
The level also coincides with the lower trend line of the descending parallel channel, as shown in the chart below. As a result of this confluence, SHIB sees a price rally, with the upper trend line of the channel near $0.00002000 acting as an interim upside target for the May-June period.
Meanwhile, the daily SHIB RSI has dipped below 30, an oversold territory that could further catalyze a short-term bounce.
However, macroeconomic catalysts — primarily a hawkish Federal Reserve — continue to pose downside risks to the cryptocurrency market, including SHIB. Therefore, price rallies are likely to be sold at higher levels, thus keeping SHIB on track for its triangle breakout target near $0.00001197.
A bright future is promised
Shiba Inu developer Shytoshi Kusama offered a bright outlook for the project in what appeared to be an effort to stifle market demand for SHIB tokens.
The developer noted that Playside, a video game company based in Australia, will include Shiba Inu-themed non-fungible tokens (NFTs) — called Shiboshi — in its upcoming metaverse game of the same name.. He also noted that Shiba Inu would release documentation for its second-layer blockchain, Shibarium, “this month or the next.”
I updated the Shiboshi chat recently but I’m sure we will be seeing more from Playside soon as we near the final triad of production.
— Shytoshi Kusama™ (@ShytoshiKusama) May 7, 2022
I updated the Shiboshi chat recently, but I’m sure we’ll be seeing more of Playside soon as we get closer to the final triad of production.
The revelations came after an Ethereum whale will buy 74 billion SHIB (worth $1.23 million at press time).
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