Shiba Inu (SHIB) July Price Prediction: SHIB Could Surge to $0.000017

Key Points

• Shiba Inu is currently moored within recent $0.0000095-$0.0000105 ranges and its 21 and 50DMAs amid US Independe Day-thinned trading volumes.
• But its short-term technical set-up is looking positive, with a potential retest of June’s $0.000012 highs on the cards.
• In a risk-on scenario of Fed tightening bets being pared, SHIB could even surge as high as $0.000017.

Market Update

Shiba Inu remains locked within recent $0.0000095 to $0.0000105 ranges. The cryptocurrency’s 21-Day Moving Average in the $0.00000960s is providing support to the downside, while the 50DMA in the $0.00001040s is providing resistance to the upside.

Rangebound trade across cryptocurrency markets over the weekend and on Monday isn’t too surprising given US market closures for Independence Day. Crypto traders are also keeping their powder dry given upcoming important macro risk events such as the release of Fed meeting minutes on Wednesday plus the official US labor market report for June on Friday.

This week’s data/central bank information could develop narratives about the outlook for the US economy and Fed policy, which crypto has been sensitive in recent weeks. Broadly, anything that results in market expectations shifting in favor of more aggressive Fed tightening has been negative and vice versa.

That has not so much been the case in the last two weeks. Analysts/economists are increasingly expecting a US recession and have as such been paring back on their long-term hawkish Fed bets (as seen by the sharp pullback in US bond yields from recent highs).

But risk assets like stocks and crypto have failed to mount a sustained recovery, probably as investors focus more on near-term economic risks rather than how this might soften Fed hawkishness in 2023 and beyond.

This is a narrative that may shift in July. For instance, say market participants start focusing more on the Fed (perhaps) cutting rates in late-2023/2024 as a recession helps bring inflation back to target. Such thinking might lead to investors viewing risk assets (like stocks and crypto) in a more favorable light.

A broad rebound is a possibility if July produces more bad news on the US economy, and this bad news is taken as softening the Fed’s stance.

Decent Short-Term Technical Outlook

Back to the crypto community’s second favorite cryptocurrency Shiba Inu; SHIB/USD’s short-term technicals look promising for the bulls.

Over the weekend, as it continued to hold above $0.000010, SHIB/USD broke to the north of a downtrend that has been in play since the end of June. Meanwhile, the pair has also continued to find support from an uptrend that has been in play going all the way back to mid-June.

In other words, SHIB/USD looks to have broken to the upside of a short-term pennant structure. This is typically viewed as a bullish sign for technicians, who would normally then target a retest of recent highs. In Shiba’s case, this implies a retest of late-June highs around $0.000012.

For now, thin crypto market volumes amid US Independence Day weekend and the presence of the 50DMA, which has been offering resistance, is keeping the bulls at bay.

But maybe the bulls can take control when US market participants return on Tuesday. The first full trading week of July could well see SHIBA/USD push above its 50DMA, opening the door for a run higher towards the June highs.

Could Shiba Inu Rally to Upper $0.000010s This July?

Say the above noted short-term bull case does play out and SHIB/USD is trading back near the $0.000012 area by this time next week. It then had a formidable area of resistance to crack above if it wishes to continue the rally.

Between $0.000012 and $0.000013 lay a series of June and mid to late-May highs. But if the macro scenario that is broadly bullish for risk assets (markets betting on a less aggressive Fed as growth/inflation expectations weaken), Shiba Inu could be primed for even more upside.

Shiba Inu, a cryptocurrency that is viewed as more of a collector’s item than anything else owing to its lack of utility, is seen as one of the most speculative assets in the crypto space. SHIB is highly susceptible to rapid price movements that are driven purely by retail trader/investor emotions such as fear and greed.

In that sense, if cryptocurrency prices are broadly on the rise, “greedy” investors, or those feeling a sense of FOMO (fear of missing out), might start piling into SHIB once again.

This could be the catalyst Shiba Inu needs to clear the $0.000012 to $0.000013 resistance area to the upside. Above this area, there is very little by notable levels of resistance until around $0.000017.

A swift, FOMO-powered 30% rally from $0.000013 to $0.000017 is a possibility in the bullish scenario.

Of course, a lot has to go right for all of this to play out as the bulls are hoping. SHIB traders should bear in mind a bearish scenario where the cryptocurrency breaks below its recent support trend-line this month. This could open the door to a drop towards recent lows just above $0.000007, a 30% decline from current levels.